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Broadcom Tops Estimates, Offers Upbeat Guidance

Chip giant sees strength in cloud, 5G, broadband and other sectors continuing.

Chipmaking giant Broadcom  (AVGO) - Get Broadcom Inc. Report reported financial results ahead of analyst estimates after the bell Thursday, helped by strong demand in the cloud, 5G, broadband and other sectors.

The company reported adjusted earnings of $6.96 a share on sales of $6.78 billion.

Analyst had expected the company to report earnings of $6.88 a share, on sales of $6.755 billion, based on a FactSet survey of 26 analysts.

In the same period a year ago the company posted earnings of $5.40 a share on sales of $5.8 billion.

"Broadcom delivered record revenues in the third quarter reflecting our product and technology leadership across multiple secular growth markets in cloud, 5G infrastructure, broadband, and wireless," said Hock Tan, President and CEO, in a statement. "We are projecting the momentum to continue in the fourth quarter."

Broadcom offered guidance for fourth-quarter revenue of approximately $7.35 billion.  Analysts surveyed by FactSet are projecting fourth-quarter sales of $7.2 billion.

Shares of Broadcom were little changed in after-hours action following the report. The stock fell 5 cents, or 0.01%, to $ 491.85 in after-hours trading. During the regular session shares of Broadcom fell 0.26%.

Elsewhere, chip stocks were mixed Thursday.

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The Philadelphia Semiconductor Index was flat at 3,411.32. Among notable companies in the sector, 20 rose while 7 fell.

Cree  (CREE) - Get Cree, Inc. Report shares rose $2.21, or 2.6%, to $86.94.

ASML Holding  (ASML) - Get ASML Holding NV ADR ReportADRs rose $19.11, or 2.3%, to $861.28.

ON Semiconductor  (ON) - Get ON Semiconductor Corporation Report shares rose 72 cents, or 1.6%, to $45.40.

Among laggards, QUALCOMM  (QCOM) - Get QUALCOMM Incorporated Report shares fell $1.33, or 0.9%, to $145.12.

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Silicon Laboratories  (SLAB) - Get Silicon Laboratories Inc. Report shares fell $1.21, or 0.8%, to $157.79.

Advanced Micro Devices   (AMD) - Get Advanced Micro Devices, Inc. Report shares fell 79 cents, or 0.7%, to $109.20.