Broadcom(AVGO) 2023Q3 Earnings Summary

TigerAI
2023-09-07

Bullish Points:

1. Total net revenue for the quarter ended July 30, 2023 increased to $8,876 million, up from $8,464 million in the same period last year.

2. Net income for the quarter ended July 30, 2023 increased to $3,303 million, up from $3,074 million in the same period last year.

3. Diluted net income per share for the quarter ended July 30, 2023 increased to $7.74, up from $7.15 in the same period last year.

4. Cash and cash equivalents at the end of the period were $12,055 million.

5. Gross margin for the fiscal quarter ended July 30, 2023 was 69% of net revenue, a 2% increase compared to the prior year fiscal period.

6. Operating income for the fiscal quarter ended July 30, 2023 was $3,856 million, a 3% increase compared to the prior year fiscal period.

7. Net cash provided by operating activities was $13,257 million for the three fiscal quarters ended July 30, 2023, compared to $12,153 million for the same period in 2022.

Bearish Points:

1. Total principal amount outstanding on long-term debt was $40,958 million.

2. Company operates in the highly cyclical semiconductor industry, which is characterized by price erosion, wide fluctuations in product supply and demand, constant and rapid technological change, evolving technical standards, frequent new product introductions, and short product life cycles.

3. Majority of sales come from a small number of customers, making the company vulnerable to reduction in demand or loss of significant customers.

4. Company's substantial indebtedness could adversely affect its financial health and ability to execute its business strategy.

5. COVID-19 pandemic has disrupted normal business activity, impacting workforce, operations, supply chain, and ability to fulfill orders.

In summary, Broadcom (AVGO) has shown strong financial performance with increased revenue, net income, and operating income. However, the company faces challenges such as a highly cyclical industry, dependence on a small number of customers, and substantial indebtedness. For more information, you can read the original text of Broadcom's financial report: https://www.sec.gov/Archives/edgar/data/1730168/000173016823000077/avgo-20230730.htm

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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pixiezz
·2023-09-12
TOP
The analysts $1,000 price target is accounting for AVGO earnings, and doesn’t even include the big upside that AVGO should experience if the VMWare transaction goes through in October.
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- TigerAI:
  Based on the information provided, here are the bullish and bearish points of Broadcom's 2023Q3 earnings report:
  Bullish Points:
  Q3 2023 consolidated net revenue increased by 5% year on year.
  Semiconductor Solutions revenue grew by 5% year on year.
  Infrastructure Software revenue increased by 5% year on year.
  Hyperscale continued to grow double digits year on year.
  Generative AI investments are driving strength in hyperscale spending.
  Q3 networking revenue increased by 20% year on year.
  Q4 networking revenue is expected to accelerate by more than 20% year on year.
  Q4 wireless revenue is expected to grow over 20% sequentially.
  Q4 industrial resales are expected to be up low single-digit percentage year on year.
  Q4 Infrastructure Software segment revenue is expected to be up mid-single digit year on year.
  Bearish Points:
  Enterprise and telco spending moderated.
  Q3 industrial resales declined by 3% year on year due to weak demand in China.
  Q4 server storage connectivity revenue is expected to be down mid-teens percent year on year.
  Q4 broadband revenue is expected to decline high single digits year on year.
  Q4 gross margins are expected to be down 80 basis points sequentially due to product mix.
  Supply constraints due to long lead times for AI products.
  Potential inventory correction in non-AI networking business.
  Slowdown in adoption rate.
  Uncertainty in predicting upcycle.
  Limited visibility on custom silicon business growth.
  The financial highlights of Broadcom's 2023Q3 earnings report include a consolidated net revenue of $8.9 billion, a 5% increase compared to the previous year. The Semiconductor Solutions revenue and Infrastructure Software revenue both grew by 5% year on year. The earnings per share (EPS) for 2023Q3 was $8.00.
  Reference articles:Broadcom (AVGO) Q3 2023 Earnings Call Transcript Broadcom (AVGO) Q3 2023 Earnings Call Transcript Summary
  2023-09-12
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frosti
·2023-09-12
TOP
What does Truist see that no one else does by raising AVGO price point to $955 this morning Well, if that's the case, is this a good buying opportunity??
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- TigerAI:
  Based on the information provided, Truist raised the price point of AVGO (Broadcom) to $955 this morning. However, the reason behind this decision is not mentioned in the context. Therefore, it is unclear what Truist sees that no one else does. As for whether it is a good buying opportunity, it would be best to consult with a financial advisor or conduct further research to make an informed decision.
  Summary of Broadcom's 2023Q3 earnings report:
  Q3 2023 consolidated net revenue was $8.9 billion, a 5% increase year on year.
  Semiconductor Solutions revenue grew by 5% year on year to $6.9 billion.
  Infrastructure Software revenue increased by 5% year on year to $1.9 billion.
  Hyperscale spending continued to grow, driven by investments in generative AI.
  Networking revenue in Q3 was up 20% year on year.
  Q4 networking revenue is expected to accelerate in excess of 20% year on year.
  Q4 wireless revenue is expected to grow over 20% sequentially.
  Q4 industrial resales are expected to be up low single-digit percentage year on year.
  Q4 Infrastructure Software segment revenue is expected to be up mid-single digit year on year.
  Bullish points from the earnings call include positive revenue growth, strength in key segments, and positive outlook for Q4. Bearish points include moderation in enterprise and telco spending, potential inventory correction, and limited visibility on custom silicon business growth.
  Unfortunately, the specific details of Broadcom's 2023Q3 earnings report, such as net profit, total liabilities and shareholders' equity, and earnings per share, are not provided in the context. Therefore, a detailed analysis of the earnings report cannot be provided.
  Relevant articles:
  Broadcom(AVGO) 2023Q3 Earnings Summary
  2023-09-12
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vippy
·2023-09-12
TOP
买入机会？？如果抛售是永久性的，这是否意味着AVGO将开始削减股息？只有时间能预测未来，
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- TigerAI:
  根据所提供的信息，以下是博通2023年第三季度财报的看涨和看跌点以及公司面临的挑战：
  看涨点：
  2023年第三季度合并净收入同比增长5%。
  半导体解决方案收入同比增长5%。
  基础设施软件分部收入同比增长5%。
  超大规模业务继续以双位数的速度增长。
  生成式人工智能投资正在推动超大规模支出的增长。
  第三季度网络收入同比增长20%。
  第四季度网络收入预计将同比增长20%以上。
  第四季度无线收入预计将环比增长20%以上。
  第四季度工业转售预计将同比增长较低的个位数百分比。
  第四季度基础设施软件部门的收入预计将同比增长中个位数。
  看跌点：
  企业和电信支出放缓。
  由于中国需求疲软，第三季度工业转售同比下降3%。
  第四季度服务器存储连接收入预计将同比下降15%左右。
  第四季度宽带收入预计将同比下降高个位数。
  由于产品组合，第四季度毛利率预计将环比下降80个基点。
  人工智能产品交付周期长导致的供应限制。
  非人工智能网络业务中的潜在库存修正。
  采用率下降。
  预测上行周期的不确定性。
  定制硅业务增长的可见性有限。
  挑战：博通正面临着企业和电信支出放缓、中国需求疲软影响工业转售以及非人工智能网络业务潜在库存调整等挑战。此外，由于人工智能产品的交付周期长、采用率放缓、预测升级周期的不确定性以及定制硅业务增长的可见性有限，还存在供应限制。
  参考文章：
  博通（AVGO）2023年第三季度盈利摘要
  Broadcom尽管报告了第三季度业绩，但业绩下滑
  收益季AVGO 3Q与指引3Q一致
  2023-09-12
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nimbly
·2023-09-12
TOP
AVGO管理层回购价值数十亿美元的股票以人为膨胀并让利益相关者高兴的大好时机。
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- TigerAI:
  根据所提供的信息，以下是对您的问题的回答：
  博通2023年第三季度财报的看涨点如下：
  2023年第三季度合并净收入89亿美元，同比增长5%。
  半导体解决方案收入同比增长5%，至69亿美元。
  基础设施软件同比增长5%，至19亿美元。
  超大规模继续同比增长两位数。
  生成式人工智能投资推动超大规模支出。
  第三季度网络收入同比增长20%。
  第四季度网络收入预计将同比增长20%以上。
  第四季度无线收入预计环比增长20%以上。
  第四季度工业转售预计将同比增长较低的个位数百分比。
  第四季度基础设施软件部门收入预计将同比增长个位数左右。
  Broadcom面临的挑战是：
  企业和电信支出放缓。
  由于中国需求疲软，第三季度工业转售同比下降3%。
  第四季度服务器存储连接收入预计将同比下降15%左右。
  第四季度宽带收入预计将同比下降高个位数。
  产品组合方面，第四季度毛利率预计将环比下降80个基点。
  人工智能产品交付周期长导致的供应限制。
  非人工智能网络业务中的潜在库存修正。
  采用率下降。
  预测上行周期的不确定性。
  定制硅业务增长的可见性有限。
  给定信息中未提供Broadcom长期债务的未偿本金总额。
  截至2023年7月30日的财年毛利率为74.40%。
  给定信息中未提供截至2023年7月30日的季度稀释后每股净收入。
  截至2023年7月30日的三个财政季度，经营活动提供的净现金为47.2亿美元。
  给定信息中未提供Broadcom财务报告原文的链接。
  参考文章：
  博通（AVGO）2023年第三季度收益看涨期权记录
  博通（AVGO）2023年第三季度看涨期权财报摘要
  2023-09-12
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bubblyx
·2023-09-12
TOP
Looks like the market makers started pulling AVGO down with NVDA, after Cramer said that NVDA needed to take a rest.
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- TigerAI:
  Based on the information provided, here is a summary of the bullish and bearish points of Broadcom's 2023Q3 earnings report, as well as the risks and challenges the company is facing:
  Bullish Points:
  Q3 2023 consolidated net revenue increased by 5% year on year.
  Semiconductor Solutions revenue grew by 5% year on year.
  Infrastructure Software revenue increased by 5% year on year.
  Hyperscale business continued to grow at a double-digit rate.
  Generative AI investments are driving strength in hyperscale spending.
  Networking revenue in Q3 increased by 20% year on year.
  Q4 networking revenue is expected to accelerate by over 20% year on year.
  Q4 wireless revenue is expected to grow by over 20% sequentially.
  Q4 industrial resales are expected to be up by a low single-digit percentage year on year.
  Q4 Infrastructure Software segment revenue is expected to be up by a mid-single-digit percentage year on year.
  Bearish Points:
  Enterprise and telco spending moderated.
  Q3 industrial resales declined by 3% year on year due to weak demand in China.
  Q4 server storage connectivity revenue is expected to be down by a mid-teens percentage year on year.
  Q4 broadband revenue is expected to decline by a high single-digit percentage year on year.
  Q4 gross margins are expected to be down by 80 basis points sequentially due to product mix.
  Supply constraints due to long lead times for AI products.
  Potential inventory correction in non-AI networking business.
  Slowdown in adoption rate.
  Uncertainty in predicting upcycle.
  Limited visibility on custom silicon business growth.
  Risks and Challenges:Broadcom is facing risks and challenges such as moderated enterprise and telco spending, weak demand in China affecting industrial resales, declining server storage connectivity and broadband revenue, potential inventory correction, supply constraints, and uncertainty in predicting the upcycle. Additionally, there is a slowdown in adoption rate and limited visibility on custom silicon business growth.
  Reference articles:
  Broadcom(AVGO) 2023Q3 Earnings Summary
  Broadcom Inc. (AVGO) Q3 2023 Earnings: Strong Performance and Positive Outlook
  2023-09-12
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zinglee
·2023-09-12
TOP
Most analysts have buy or overweight recommendations, however the target price is not high enough and thats a problem.
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- TigerAI:
  Based on the information provided, here are the bullish and bearish points of Broadcom's 2023Q3 earnings summary and the challenges that Broadcom is facing:
  Bullish Points:
  Q3 2023 consolidated net revenue increased by 5% year on year.
  Semiconductor Solutions revenue grew by 5% year on year.
  Infrastructure Software segment revenue increased by 5% year on year.
  Hyperscale continued to grow double digits year on year.
  Generative AI investments are driving strength in hyperscale spending.
  Q3 networking revenue increased by 20% year on year.
  Q4 networking revenue is expected to accelerate in excess of 20% year on year.
  Q4 wireless revenue is expected to grow over 20% sequentially.
  Q4 industrial resales are expected to be up low single-digit percentage year on year.
  Q4 Infrastructure Software segment revenue is expected to be up mid-single digit year on year.
  Bearish Points:
  Enterprise and telco spending moderated.
  Q3 industrial resales declined by 3% year on year due to weak demand in China.
  Q4 server storage connectivity revenue is expected to be down mid-teens percent year on year.
  Q4 broadband revenue is expected to decline high single digits year on year.
  Q4 gross margins are expected to be down 80 basis points sequentially on product mix.
  Supply constraints due to long lead times for AI products.
  Potential inventory correction in non-AI networking business.
  Slowdown in adoption rate.
  Uncertainty in predicting upcycle.
  Limited visibility on custom silicon business growth.
  Challenges that Broadcom is facing include moderated enterprise and telco spending, weak demand in China affecting industrial resales, and potential inventory correction in non-AI networking business.
  Reference articles:Broadcom (AVGO) Q3 2023 Earnings Call Transcript Broadcom slips despite reporting Q3 results, in-line guidance
  2023-09-12
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wigglyz
·2023-09-12
TOP
More games being played with AVGO by the market makers.
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- TigerAI:
  Based on the information provided, here is the analysis of Broadcom's 2023Q3 earnings report:
  Earnings Data:
  Total net revenue for 2023Q3 was $8.9 billion, a 5% increase compared to the same period last year.
  Net profit for 2023Q3 was $3.30 billion.
  Diluted net income per share for 2023Q3 was $8.00.
  Cash and cash equivalents for 2023Q3 were $12.05 billion.
  Gross margin for 2023Q3 was 74.40%.
  Operating income for 2023Q3 was $8.88 billion.
  Net cash provided by operating activities for 2023Q3 is not available in the provided information.
  Analysis:
  The bullish points of Broadcom's 2023Q3 earnings report include the increase in consolidated net revenue, growth in Semiconductor Solutions and Infrastructure Software revenue, and the strength in hyperscale spending.
  The bearish points include moderated enterprise and telco spending, decline in industrial resales, and potential inventory correction in non-AI networking business.
  The challenges that Broadcom is facing include supply constraints due to long lead times for AI products, slowdown in adoption rate, and limited visibility on custom silicon business growth.
  Earnings Call:The earnings call transcript summary mentions both positive and negative aspects that could impact Broadcom's future stock price. The bullish points include the growth in networking revenue and expectations for future revenue growth in various segments. The bearish points include challenges in certain business areas and uncertainties in predicting the upcycle.
  Relevant Opinion:No relevant articles were provided in the context.
  Reference articles:Broadcom (AVGO) Q3 2023 Earnings Call Transcript
  2023-09-12
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Broadcom(AVGO) 2023Q3 Earnings Summary

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