Broadcom Gives Upbeat Sales Forecast on Data-Center Growth

Broadcom gave a quarterly sales forecast that topped analysts’ estimates on strong demand for data-center semiconductors, according to Bloomberg.

Revenue will be about $5.4 billion, plus or minus $75 million, in the fiscal fourth quarter, which ends in October, the San Jose-based company said in a statement. Analysts had projected sales of $5.36 billion.

Broadcom’s net income was $1.2 billion, or $2.71 a share, in the fiscal third quarter, compared with $507 million, or $1.14 a share, a year earlier. Revenue rose 13 percent to $5.06 billion. By division, wired infrastructure had sales of $2.3 billion, up 4 percent from a year earlier.

Wireless communications revenue was little changed at $1.3 billion. The enterprise storage unit reported sales of $1.25 billion, a jump of 70 percent helped by an acquisition. Adjusted profit was $4.98 a share, compared with the average analyst estimate of $4.83.

Sales in 2020 will return to double-digit percentage growth, after a dip in 2019, as the industry moves to new wireless technology that will give Broadcom the opportunity to regain market share, company CEO Hock Tan said. For the current period, weaker demand from Samsung was partially made up for by demand for new iPhone parts.