Broadcom: Fiscal 3Q22 Financial Results

Broadcom Inc. reported financial results for its third quarter of fiscal year 2022, ended July 31, 2022.

“Broadcom’s record third quarter results were driven by robust demand across cloud, service providers, and enterprise,” said Hock Tan, president and CEO. “We expect solid demand across our end markets to continue in the fourth quarter, reflecting continued investment by our customers of next gen technologies in data centers, broadband, and wireless.”

“Consolidated revenue grew 25% Y/Y to $8.5 billion and operating profit increased 32%,” said Kirsten Spears, CFO. “We generated $4.3 billion in free cash flow and are expecting free cash flow to be strong in the 4FQ22. We remain committed to return excess cash to shareholders and in 3FQ22, we returned $3.2 billion to shareholders including $1.7 billion of cash dividends and $1.5 billion of share repurchases.”

Cash and cash equivalents at the end of the fiscal quarter were $9,977 million, compared to $9,005 million at the end of the prior quarter.

During 3FQ22, the company generated $4,424 million in cash from operations and spent $116 million on capital expenditures. It spent $1,792 million on share repurchases and eliminations, consisting of $1,500 million in repurchases of 2.6 million shares and $292 million of withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 0.6 million shares withheld).

On June 30, 2022, it paid a cash dividend of $4.10 per share of common stock, totaling $1,661 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $75 million.

4FQ22 outlook

• Revenue guidance of approximately $8.9 billion
• Adjusted EBITDA guidance of approximately 63% of projected revenue.

Quarterly dividends
The board of directors has approved a quarterly cash dividend on its common stock of $4.10 per share. The common stock dividend is payable on September 30, 2022 to common stockholders of record at the close of business on September 22, 2022.

The board has also approved a quarterly cash dividend on its 8.00% Mandatory Convertible Preferred Stock, Series A, of $20.00 per share. This dividend is payable on September 30, 2022 to preferred stockholders of record at the close of business on September 15, 2022.