Broadcom pops as guidance, Q3 earnings top expectations, aided by chip sales
Justin Sullivan

Broadcom (NASDAQ:AVGO) shares rose 2% in extended trading after the semiconductor company reported third-quarter results and guidance that topped estimates.
For the period ending July 31, Broadcom (AVGO) said it earned $9.73 per share on $8.46B in revenue, aided by a 78% year-over-year rise in semiconductor sales. Software revenue rose 22% year-over-year to $1.84B. 
A consensus of analysts was expecting Broadcom (AVGO) to earn $9.55 per share on $8.41B in revenue.
The company also generated $4.3B in free cash flow during the period and returned $3.2B to shareholders, including $1.7B in dividends.
Looking to the fourth-quarter, Broadcom (AVGO) said it expects revenue to be $8.9B, compared to expectations of $8.72B. It also expects adjusted EBITDA to be about 63% of revenue.
"We expect solid demand across our end markets to continue in the fourth quarter, reflecting continued investment by our customers of next generation technologies in data centers, broadband, and wireless," Hock Tan, President and CEO of Broadcom (AVGO), said in a statement.
Broadcom (AVGO) is hosting a conference call at 5 p.m. EST to discuss the results.
Last month, it was reported that VMware (VMW) was slowing down deals ahead of the Broadcom (AVGO) acquisition, resulting in concerns for both sales people and customers alike.