Broadcom Shares Rise After Chipmaker Posts Strong 2020 Guidance

Broadcom's quarterly revenue narrowly beat estimates and earnings per share met consensus. Guidance for 2020 beat analyst estimates.
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Shares of Broadcom were rising after the chip maker posted in-line earnings per share and better-than-expected 2020 revenue and profit guidance. 

The stock was rising as much as 1.3% before moderating to a 0.69% gain to $330.05 a share in postmarket trading Thursday. The stock gained 2.53% in regular hours trading on Thursday and is up 29% this year. 

Adjusted earnings per share for the fourth quarter ended Nov. 3 came in at $5.39, in line with Wall Street estimates of $5.39. Revenue was $5.776 billion, slightly beating estimates of $5.766 billion and growing 6% year-over-year. 

The company released full year 2020 guidance, saying it's forecasting revenue growth of 11% to $25 billion, plus or minus $500 million, ahead of analysts' expectations of $23.898 billion. The company also forecast adjusted EBITDA for the year of $13.75 billion, plus or minus $250 million, ahead of analyst estimates of $12.978 billion. 

"Fiscal year 2019 concluded as expected," said CEO Hock Tan. "Our semiconductor solutions segment continued to work its way through a cyclical correction. This was more than offset by our infrastructure software segment, which delivered healthy results benefitting from the integration and performance of our CA business. Looking to fiscal 2020, we remain well-positioned across our technology franchises. We continue to believe that our core semiconductor business is bottoming and will return to year over year growth in the second half of our fiscal year. In addition, we expect to benefit from the integration of the Symantec Enterprise Security business."