By Dhirendra Tripathi
Investing.com – Broadcom stock (NASDAQ:AVGO) traded higher by 0.8% in Friday’s premarket following a promising outlook for the ongoing quarter.
The company delievered record revenue in the third quarter and said momentum in its domains of Cloud, wireless, broadband and 5G infrastructure will continue.
Broadcom is betting big time on 5G as the technology and the opportunities it offers for many more smart devices and machine-to-machine communication, all of which will need its chips for devices, servers and data centers. The technology, which allows superior network speeds, is yet to roll out in much of the world. China, South Korea and Japan have rolled out 5G extensively.
The company has guided for fourth-quarter revenue of $7.35, up 14% on-year. This follows the 16% jump in the company’s third-quarter revenue to $6.8 billion. Adjusted profit per share was $6.96. Both income and revenue beat estimates.
The company's board also approved a quarterly cash dividend of $3.60 per share. It also approved a separate quarterly dividend for preferred stockholders.