After-Hours Alert: Why Broadcom Stock Is Rising

Broadcom Inc AVGO shares are trading higher in Thursday's after-hours session after the company announced better-than-expected financial results and issued guidance above analyst estimates.

Broadcom said fiscal third-quarter revenue jumped 25% year-over-year to $8.46 billion, which beat average analyst estimates of $8.37 billion, according to Benzinga Pro. The company reported quarterly earnings of $9.73 per share, which beat average analyst estimates of $9.56 per share. 

Broadcom ended the quarter with $9.97 billion in cash and equivalents. The company said it spent $1.79 billion on share repurchases during the quarter.

"Broadcom's record third-quarter results were driven by robust demand across cloud, service providers, and enterprise. 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," said Hock Tan, president, and CEO of Broadcom.

Broadcom anticipates fiscal fourth-quarter revenue of approximately $8.9 billion versus the estimate of $8.73 billion. 

AVGO Price Action: Broadcom has a 52-week high of $672.18 and a 52-week low of $463.91.

The stock was up 2.33% in after-hours Thursday afternoon. 

Photo: Jernej Furman from Flickr.