Shulou(Shulou.com)11/24 Report--

Beijing time on September 2, Broadcom today released the company's financial results for the third quarter of fiscal 2022.

According to the report, Broadcom's third-quarter net revenue was $8.464 billion, up 25% from $6.778 billion in the same period last year, compared with $8.103 billion in the previous quarter, and net profit was $3.074 billion, up 64% from $1.876 billion in the same period last year. compared with $2.590 billion in the previous quarter. Adjusted net profit, not in accordance with GAAP, was $4.241 billion, compared with $3.124 billion in the same period last year and $4 billion in the previous quarter.

Broadcom's third-quarter revenue and adjusted diluted earnings per share exceeded Wall Street analysts' expectations, as did the outlook for fourth-quarter revenue, pushing its shares up more than 2 per cent in after-hours trading.

Summary of results for the third quarter:

For the quarter ended July 31, 2022, Broadcom's net profit was $3.074 billion, up 64% from $1.876 billion in the same period last year, compared with $2.59 billion in the previous quarter; net profit attributable to common shareholders was $2.999 billion, compared with $1.802 billion in the same period last year and $2.515 billion in the previous quarter. Net diluted profit per common shareholder in the third quarter was $7.15, compared with $4.20 in the same period last year and $5.93 in the previous quarter.

Excluding some one-time items (not in accordance with GAAP), Broadcom's adjusted net income for the third quarter was $4.241 billion, or adjusted diluted earnings per share of $9.73, beating analysts' expectations. By comparison, Broadcom's adjusted net income for the same period last year was $3.124 billion, or adjusted diluted earnings per share of $6.96. On average, 22 analysts expected Broadcom's adjusted earnings per share to reach $9.56 in the third quarter, according to data provided by Yahoo Finance.

Broadcom's third-quarter net revenue was $8.464 billion, up 25% from $6.778 billion in the same period last year and $8.103 billion in the previous quarter, which also beat analysts' expectations. On average, 21 analysts had expected Broadcom's third-quarter revenue to reach $8.37 billion, according to data provided by Yahoo Finance.

By business unit:

-Broadcom's third-quarter net revenue from semiconductor solutions was $6.624 billion, up 32 per cent from $5.021 billion in the same period last year, and accounted for 78 per cent of total net revenue, compared with 74 per cent in the same period last year.

-Broadcom's third-quarter net revenue from the infrastructure software division was $1.84 billion, up 5% from $1.757 billion in the same period last year, and accounted for 22% of total net revenue, compared with 26% in the same period last year.

Broadcom's third-quarter adjusted EBITDA (net income before interest, tax, depreciation and amortization) was $5.378 billion, up $1.255 billion from $4.123 billion in the same period last year.

Broadcom's third-quarter gross profit was $5.681 billion, compared with $4.197 billion in the same period last year and $5.439 billion in the previous quarter. Excluding some one-time items (not in accordance with GAAP), Broadcom's adjusted gross profit for the third quarter was $6.427 billion, compared with $5.088 billion in the same period last year and $6.186 billion in the previous quarter.

Broadcom's third-quarter operating profit was $3.737 billion, compared with $2.126 billion in the same period last year and $3.394 billion in the previous quarter. Excluding some one-time items (not in accordance with GAAP), Broadcom's adjusted operating profit was $5.199 billion in the third quarter, compared with $3.946 billion in the same period last year and $4.939 billion in the previous quarter.

Costs and expenses:

Broadcom's total revenue cost in the third quarter was $2.783 billion, compared with $2.581 billion in the same period last year. Of this total, revenue costs were $2.077 billion, compared with $1.729 billion for the same period last year; amortization expenses for intangible assets related to mergers and acquisitions were $705 million, compared with $851 million for the same period last year; and restructuring charges were $1 million, unchanged from the same period last year.

Broadcom's total operating expenses in the third quarter were $1.944 billion, compared with $2.071 billion in the same period last year. Of this total, R & D expenditure was $1.255 billion, compared with $1.205 billion in the same period last year; sales, general and administrative expenses were $323 million, compared with $346 million in the same period last year; and amortization of intangible assets related to mergers and acquisitions was $359 million, compared with $494 million in the same period last year. Restructuring, impairment and disposal expenses were $7 million, compared with $2600 in the same period last year.

Cash flow related information:

In the third quarter, Broadcom's cash from business operations was $4.424 billion, an increase of $883 million from $3.541 billion in the same period last year. Broadcom's capital expenditure in the third quarter was $116 million.

Broadcom's free cash flow in the third quarter was $4.308 billion, up $882 million from $3.426 billion in the same period last year.

At the end of the third quarter, Broadcom's cash and cash equivalents totaled $9.977 billion, compared with $9.005 billion at the end of the previous quarter.

Capital return Plan:

Broadcom paid a cash dividend of $4.10 per common share on June 30, 2022, with a total cash dividend of $1.661 billion per common share and a cash dividend of $20.00 per share on mandatory convertible preferred stocks. the total cash used to pay out the dividend is $75 million.

In the third quarter, Broadcom spent $1.792 billion on share buybacks and write-offs, including $1.5 billion on repurchases of 2.6 million shares and a $292 million withholding tax.

Broadcom's board of directors has approved a quarterly cash dividend of $4.10 per common share, which will be paid on September 30, 2022 to shareholders of record at the end of business hours on September 22, 2022.

In addition, Broadcom's board of directors has approved a quarterly cash dividend of $20.00 per share for its Series A mandatory convertible preferred shares with a coupon of 8.00%. The dividend will be paid on September 30, 2022 to shareholders of record at the end of business hours on September 15, 2022.

Performance outlook:

Based on current business trends and conditions, Broadcom expects net revenue of about $8.9 billion in the fourth quarter of fiscal 2022 to October 30, 2022, a performance outlook that exceeds analysts' expectations; adjusted EBITDA, net profit before interest, tax, depreciation and amortization, will account for about 63 per cent of expected revenue. On average, 25 analysts expected Broadcom's revenue in the fourth quarter of fiscal 2022 to reach $8.73 billion, according to Yahoo Finance.

Changes in stock prices:

Broadcom shares fell $7.10, or 1.42 per cent, to $492.01 in regular Nasdaq trading. Broadcom shares rose $9.99, or 2.03 per cent, to $502.00 in after-hours trading as of 05:59 EDT on Thursday (05:59 Beijing time on Friday). Over the past 52 weeks, Broadcom has priced as high as $677.76 and as low as $463.91.

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