Broadcom Stock Falters After Company Reports Loss, Disappointing Revenue Outlook
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Key Takeaways
Broadcom ( AVGO ) shares fell after the closing bell Thursday, sliding following quarterly results that swung to a loss due to increased merger-related expenses.
The semiconductor manufacturing company posted a net loss of $1.875 billion, compared to a profit of $3.3 billion in the year-ago quarter. Adjusting for $1.5 billion in amortization of acquisition-related intangible assets and other restructuring costs, Broadcom’s earnings were $1.24 per share.
The company projected fiscal fourth-quarter revenue of $14 billion, which fell slightly short of the analyst consensus. CEO Hock Tan said the company expected full-year AI revenue to be $12 billion, "driven by ethernet networking and custom accelerators for AI data centers,"
Broadcom acquired software firm VMware in November 2023. "Broadcom's third quarter results reflect continued strength in our [ artificial intelligence ] semiconductor solutions and VMware," said Tan.
Shares of Broadcom slipped more than 6% in after-hours trading. They've risen substantially this year, climbing some 40%.
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