The Irvine, CA-based company reported fiscal Q3 EPS of $2.89, easily exceeding analysts’ view of $2.76. Revenue surged 117.3% from last year to $3.8 billion, also beating estimates of $3.76 billion.
AVGO’s Q3 adjusted gross margins of 60.4% was in-line with guidance of 59-61%.
Looking ahead, Broadcom forecast Q4 revenue to range from $4.025 billion to $4.175 billion, which straddles Wall Street’s view of $4.05 billion.
The company also declared a quarterly dividend of $0.51 per share. The dividend is payable September 30, 2016 to shareholders of record as of September 19.
From the press release:
“We delivered strong third quarter financial results with 7 percent sequential growth in revenue and 14 percent sequential growth in EPS, a clear demonstration of the leverage inherent in our operating model” said Hock Tan, President and CEO of Broadcom Limited. “We are expecting an even stronger performance in the fourth quarter, driven by robust growth in our wireless segment.”
Despite the seemingly good report, Broadcom shares fell $3.74 (-2.11%) to $173.35 in after hours trading. Prior to today’s report, AVGO had risen nearly 29% year-to-date.