Shares of Broadcom (AVGO) – Get Report were rising after hours after the company reported third-quarter results that topped analyst estimates for the period.
For the quarter ended Aug. 2 the San Jose, Calif., semiconductor and software producer reported non-GAAP earnings of $5.40 a share, compared with the FactSet-derived analyst consensus estimate of $5.24 a share.
Revenue was $5.82 billion against the estimate of $5.76 billion.
“Our outlook for the fourth quarter reflects a strong anticipated ramp in wireless, as well as the continuing surge in demand for networking from cloud and telecom customers, more than offsetting expected softness in enterprise,” Chief Executive Hock Tan said in a statement.
For the fourth quarter, the company expects revenue between $6.25 billion and $6.55 billion. Analysts are forecasting revenue of $6.18 billion.
For the year-earlier period, the company posted earnings of $5.16 a share on sales of $5.5 billion. It reported net income of $693 million.
“Looking ahead, our cash-flow outlook remains robust and we plan to pay down an additional $3 billion in debt in the fourth quarter,” said Chief Financial Officer Tom Krause.
In its previous release, Broadcom warned that wireless chip revenue would be down for the year before making a comeback in October.
Semiconductor revenue totaled $4.2 billion in the quarter, representing 72% of its overall revenue. That percentage is a four-point decline for its share of revenue in the year-earlier period.
Shares of Broadcom at last check rose 1.6% to $357.75.
Broadcom is a holding in Jim Cramer’s Action Alerts PLUS member club.