Broadcom Sees Higher Q3 Revenue, Above Market; Plans Up To $10 Bln Share Buyback - Update

(RTTNews) - While announcing significantly higher second-quarter results on Thursday, Broadcom Inc. (AVGO), a developer of semiconductor and infrastructure software solutions, issued third-quarter outlook for revenue and adjusted EBITDA margin, higher than last year.

The company expects third-quarter revenue of around $8.4 billion, and adjusted EBITDA of approximately 63.5 percent of projected revenue.

On average, 22 analysts polled by Thomson Reuters expect revenues of $8.01 billion for the quarter. Analysts' estimates typically exclude special items.

In the prior year third quarter, the company recorded revenue of $6.78 billion and adjusted EBITDA margin of 61 percent.

Hock Tan, President and CEO of Broadcom, said, "Broadcom's second quarter revenue accelerated sequentially, and was driven by strength in networking and server storage. We expect this momentum to continue into the third quarter."

Further, the company said its Board of Directors has approved a quarterly cash dividend on its common stock of $4.10 per share, payable on June 30 to stockholders of record at the close of business on June 22.

The Board has also approved a quarterly cash dividend on its 8.00 percent Mandatory Convertible Preferred Stock, Series A, of $20.00 per share.

In addition, Broadcom's Board has authorized a new share repurchase program to repurchase up to $10 billion of common stock through December 31, 2023.

The new share repurchase authorization is in addition to the share repurchase program authorized in December 2021, under which the company may repurchase the current remaining $3 billion of common stock through December 31, 2022.