Broadcom Inc. (NASDAQ:AVGO) shares are trading higher Friday after the company reported better-than-expected third quarter financial results and issued fourth quarter sales guidance above estimates on Thursday.
What To Know: The company reported adjusted earnings per share of $1.69, beating the consensus estimate of $1.65. In addition, Broadcom reported sales of $15.95 billion, beating the consensus estimate of $15.83 billion and representing a 22% year-over-year increase.
CEO Hock Tan pointed to continued strength in custom AI accelerators, with AI revenue up 63% year over year to $5.2 billion.
Q4 Outlook: The company sees sales of $17.40 billion, versus the consensus estimate of $17.02 billion. Broadcom expects AI semiconductor sales to increase to $6.2 billion in the fourth quarter.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Wells Fargo analyst Aaron Rakers maintained an Equal-Weight rating on Broadcom and raised the price target from $255 to $345.
- Barclays analyst Tom O’Malley maintained an Overweight rating on Broadcom and raised the price target from $265 to $400.
- Evercore ISI Group analyst Mark Lipacis maintained an Outperform rating on Broadcom and raised the price target from $342 to $370.
- Keybanc analyst John Vinh maintained an Overweight rating on Broadcom and raised the price target from $330 to $400.
- Piper Sandler analyst Harsh Kumar maintained an Overweight rating on Broadcom and raised he price target from $315 to $375.
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AVGO Price Action: At the time of writing, Broadcom stock is trading 8.66% higher at $332.69, according to data from Benzinga Pro.
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