NASDAQ$AVGO

Broadcom Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Broadcom delivered record revenues driven by product and technology leadership.

Broadcom announced its Q3 2021 financial results, reporting a revenue of $6.778 billion, a 16% increase year-over-year. The company's GAAP net income was $1.876 billion, with a diluted EPS of $4.20, and generated $3.426 billion in free cash flow. Broadcom also provided Q4 revenue guidance of approximately $7.35 billion, expecting a 14% increase from the prior year period.

  • Revenue of $6,778 million, up 16% year-over-year.
  • GAAP net income of $1,876 million; Adjusted EBITDA of $4,123 million.
  • GAAP diluted EPS of $4.20; Non-GAAP diluted EPS of $6.96.
  • Free cash flow of $3,426 million.

Headline financials

Total Revenue

$6.78B

Previous: $5.82B+16.4%
EPS (adj)

$0.70

Previous: $0.54+29.6%
Capital Expenditures

-$355M

Previous: -$361M+1.7%
Free Cash Flow

$1.52B

Previous: $327M+365.1%
Net Income

$1.88B

Previous: $688M+172.7%
Operating Income

$2.13B

Previous: $1.01B+110.9%
Gross Profit

$4.2B

Previous: $3.32B+26.6%
Cash & Equivalents

$11.1B

Previous: $8.86B+25.4%
Total Assets

$75.9B

Previous: $79.3B-4.3%
Stock-Based Comp

$421M

Previous: $465M-9.5%

Revenue & EPS history

Broadcom · Revenue · Quarterly

$6.78B

Q3 2021+16.4%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Broadcom · $6.78B total across 2 segments · Q3 2021

  • Semiconductor Solutions
    $5.02B+19.0%
  • Infrastructure Software
    $1.76B+9.7%

Forward guidance

Broadcom anticipates continued momentum, projecting fourth quarter revenue of approximately $7.35 billion, representing an expected increase of 14 percent from the prior year period. They also expect fourth quarter Adjusted EBITDA to be approximately 61 percent of projected revenue.

Tailwinds

  • Fourth quarter revenue guidance of approximately $7.35 billion.
  • Expected revenue increase of 14 percent from the prior year period.
  • Fourth quarter Adjusted EBITDA guidance of approximately 61 percent of projected revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+2.9%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

69%

38 / 55 earnings

Positive

+22.7%

Q4 2024

Best reaction

-19.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-8.1%-14.2%
Q1 2026+6.1%+7.9%-0.9%
Q4 2025-19.2%-19.8%-15.1%
Q3 2025+9.5%+20.7%+10.5%
Q2 2025+0.0%+1.0%+4.9%
Q1 2025+8.6%+8.2%-18.5%
Q4 2024+22.7%+31.1%+22.4%
Q3 2024-11.1%-3.8%+14.6%
Q2 2024+14.9%+25.2%+16.4%
Q1 2024+4.2%-4.3%-0.8%
Q4 2023+4.5%+18.7%+16.1%
Q3 2023-2.2%-2.3%-6.9%
Q2 2023+0.5%-2.2%+7.4%
Q1 2023+6.6%+5.3%+8.1%
Q4 2022+5.1%+10.1%+13.5%
Q3 2022+0.2%-0.2%-11.0%
Q2 2022+9.7%+9.1%-4.2%
Q1 2022+1.7%-1.7%+7.0%
Q4 2021+7.3%+4.5%+5.2%
Q3 2021+0.9%+0.7%-1.2%
Q2 2021+0.3%-2.2%-1.2%
Q1 2021-2.8%-4.2%+2.8%
Q4 2020-2.5%+0.4%+7.1%
Q3 2020-3.2%-6.5%-4.8%
Q2 2020+2.5%+1.9%+1.9%
Q1 2020-4.8%-18.9%+3.4%
Q4 2019-1.3%+1.3%-6.4%
Q3 2019-2.6%-3.1%-5.7%
Q2 2019-4.9%-0.6%+2.0%
Q1 2019+7.0%+10.4%+16.9%
Q4 2018-1.5%+6.4%+0.5%
Q3 2018+5.1%+5.0%+10.3%
Q2 2018-2.1%-0.8%-6.0%
Q1 2018-2.2%-7.0%-5.2%
Q4 2017+0.8%-0.6%+3.8%
Q3 2017-4.4%-5.9%-6.9%
Q2 2017+6.3%+6.0%-2.7%
Q1 2017+3.0%+3.3%+3.8%
Q4 2016+6.2%+6.5%+4.8%
Q3 2016-1.9%-3.0%-2.2%
Q2 2016+5.0%+6.5%-0.4%
Q1 2016+6.6%
Q4 2015+9.0%
Q3 2015+16.4%
Q2 2015+4.7%
Q1 2015+14.2%
Q4 2014+11.8%
Q3 2014+7.7%
Q2 2014+0.9%
Q1 2014+3.9%
Q4 2013+6.2%
Q3 2013+2.1%
Q2 2013+9.9%
Q1 2013+2.1%
Q4 2012+2.1%

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