Broadcom Shares Fall After Q3 Sales Miss

Broadcom Inc AVGO reported a third-quarter sales miss after Thursday's closing bell.

Adjusted earnings came in at $5.16, beating estimates by 2 cents. Sales came in at $5.51 billion, missing estimates by $35 million. The company reaffirmed 2019 guidance.

"Our broad portfolio of mission critical semiconductor and infrastructure software solutions, utilized by the world's largest enterprises, continued to drive sustained revenues and robust cash flow despite a challenging market backdrop," said Hock Tan, President and CEO. "Looking at the semiconductor solutions segment, we believe demand has bottomed out but will continue to remain at these levels due to the current uncertain environment."

Highlights

• Free cash flow grew 8% year-over-year
• Over $2 billion was returned to shareholders
• Net revenue grew 8.9% year-over-year
• Net income was $715 million

Broadcom shares are down about 1.5% in the after-hours session. The stock closed at $300.58 per share.