Broadcom shares slide on narrower Q3 beat

Broadcom beats consensus on top and bottom lines for fiscal Q3.
AVGO stock declines slightly near 2% range in the immediate aftermath.
Q4 revenue guidance rises to $17.4 billion.

Clay Webster FXStreet

The market initially sold off Broadcom (AVGO) at a moderate pace after the semiconductor giant reported a narrow beat on fiscal third-quarter results. The company's share price initially slid from the Thursday close near $306 to $298 at the time of writing before beginning a tepid recovery.

Broadcom earned $1.69 in adjusted earnings per share (EPS) on revenue of $15.95 billion. Sales rose 22% on an annual basis, down from the 47% figure seen in the same quarter a year ago.

Wall Street had expected $1.66 in adjusted EPS on $15.82 billion in revenue.

Broadcom earned $7.02 billion in free cash flow during Q3, which amounts to 44% of revenue. Additionally, Broadcom projects $17.4 billion in sales during Q4, better than the $17.1 billion consensus.

In separate earnings announcements, DocuSign (DOCU) surged over 10% after overcoming the quarterly consensus, while Lululemon (LULU) plunged about 14% on its revenue miss.

AVGO 5-minute stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.