Broadcom slides as Q4 forecast falls short

Broadcom (NASDAQ:AVGO) shares fell 3% in extended trading on Thursday after the semiconductor and software giant offered up a weaker-than-expected forecast for the fourth quarter.

Looking to the fourth-quarter, Broadcom expects revenue to be $14B, below the $14.13B estimate. Adjusted EBITDA is expected to be around 64% of total revenue.

“We expect revenue from AI to be $12 billion for fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers,” said Chief Executive Hock Tan, roughly the same as the company said previously.

For the third-quarter ending August 4, Broadcom earned an adjusted $1.24 per share as revenue rose 47% year-over-year to $13.07B. Excluding VMware, revenue rose 4% year-over-year.

Semiconductor solutions revenue was $7.27B for the period, while infrastructure revenue was $5.8B.

A consensus of analysts expected Broadcom to report adjusted earnings per share of $1.20 on revenue of $12.96B.

Broadcom also declared its quarterly dividend of $0.53 per share, payable on September 30, to stockholders of record on September 19.

The company will host a conference call at 5 p.m. EST to discuss the results.