Chip and Software Giant Misses Expectations

  • Broadcom’s revenue guidance for Q4 misses analyst expectations
  • Q3 outperformance boosted by AI semiconductor solutions and VMware acquisition
  • Adjusted earnings beat estimates at $1.24 per share
  • Revenue up 47% to $13.07 billion, beating projections of $12.98 billion

Broadcom has guided for lower revenue in the current quarter than anticipated, despite outperforming in the third fiscal quarter. The company expects $14 billion in revenue for the fourth quarter ending November 3rd, while analysts expected $14.11 billion. Shares fell 6.4% to $143.35 after-hours. Broadcom’s strong Q3 performance was driven by its artificial intelligence semiconductor solutions and VMware acquisition. Adjusted earnings were $1.24 per share, beating estimates of $1.22.

Factuality Level: 7
Factuality Justification: The article provides accurate information about Broadcom’s financial performance, including revenue expectations for the current quarter, adjusted earnings, and the impact of its artificial-intelligence semiconductor solutions business and VMware acquisition. However, it lacks some context on the overall industry trends or market conditions that may have influenced these results.
Noise Level: 3
Noise Justification: The article provides relevant information about Broadcom’s financial performance and the factors contributing to their results, but does not delve into any in-depth analysis or explore consequences of decisions on those who bear the risks.
Public Companies: Broadcom (AVGO), VMware (VMW)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Broadcom’s stock price and the semiconductor industry
Financial Rating Justification: The article discusses Broadcom’s financial performance, its revenue guidance for the next quarter, and its impact on the stock market. It also mentions the company’s acquisition of VMware, which affects the semiconductor industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: 6.4%
Sector: Technology
Direction: Down
Magnitude: Medium
Affected Instruments: Stocks

Image source: Raimond Spekking
 / Own work

Reported publicly: www.marketwatch.com