Broadcom Inc. (NASDAQ: AVGO) released fiscal third-quarter financial results after markets closed Thursday. The firm said that it had $5.16 in earnings per share (EPS) and $5.515 billion in revenue, compared with consensus estimates that called for $5.13 in EPS and $5.54 billion in revenue. The same period from last year had $4.98 in EPS and $5.07 billion in revenue.
Gross margin from continuing operations reached 71.0% of net revenue. This compares with gross margin from continuing operations of 72.0%, in the prior quarter, and 67.3% in the same quarter last year.
The board of directors approved a quarterly cash dividend of $2.65 per share. The dividend is payable on October 1 to stockholders of record at the close of business on September 23.
Looking ahead to the 2019 full fiscal year, the company expects to see net revenues of $22.5 billion with an operating margin of 52.5%. Consensus estimates are calling for $21.38 in EPS and $22.61 billion in revenue for the fiscal full year.
Hock Tan, president and CEO of Broadcom, commented:
Our broad portfolio of mission critical semiconductor and infrastructure software solutions, utilized by the world’s largest enterprises, continued to drive sustained revenues and robust cash flow despite a challenging market backdrop. Looking at the semiconductor solutions segment, we believe demand has bottomed out but will continue to remain at these levels due to the current uncertain environment.
Shares of Broadcom closed Thursday at $300.58, with a 52-week range of $208.23 to $323.20. The consensus analyst price target is $307.08. Following the announcement, the stock was down 1% at $297.02 in the after-hours session.
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