BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Broadcom Inc. Reports Q3 Fiscal 2024 Financial Results and Provides Optimistic Q4 Outlook
On September 5, 2024, Broadcom Inc. (Nasdaq: AVGO) announced impressive third-quarter fiscal year 2024 financial results, showcasing strong performance in both semiconductor and software segments. The company also released its guidance for the fourth quarter of fiscal 2024, highlighting continued growth, particularly in AI semiconductor solutions and its VMware acquisition.
Key Financial Highlights for Q3 2024
- Revenue: $13.07 billion, up 47% year-over-year.
- Adjusted EBITDA: $8.2 billion, representing 63% of revenue.
- Free Cash Flow: $4.79 billion, equating to 37% of revenue.
- Non-GAAP Net Income: $6.12 billion, up from $4.6 billion in Q3 2023.
- GAAP Net Loss: $1.88 billion, primarily due to a $4.5 billion non-cash tax provision.
- GAAP Diluted Loss per Share: $0.40.
- Non-GAAP Diluted EPS: $1.24, up from $1.05 in the same period last year.
Revenue Breakdown by Segment
- Semiconductor Solutions: $7.27 billion, up 5% year-over-year.
- Infrastructure Software: $5.8 billion, a significant 200% increase, primarily driven by the VMware acquisition.
Q4 2024 Outlook
Broadcom anticipates revenue growth to approximately $14 billion in Q4 2024, a 51% year-over-year increase, with adjusted EBITDA expected to hit 64% of projected revenue. The company forecasts continued robust demand for its AI semiconductor products, projecting AI-related revenue to exceed $12 billion for fiscal year 2024. VMware is expected to contribute significantly to software revenue growth, as the integration progresses smoothly.
CEO’s Commentary
Hock Tan, President and CEO of Broadcom, emphasized the company’s strength in AI and VMware, stating, "AI revenue continues to grow, driven by Ethernet networking and custom accelerators for AI data centers." He also noted that non-AI semiconductor revenue has stabilized and expects further growth in both segments.
Dividend Announcement
The Board of Directors approved a quarterly cash dividend of $0.53 per share, payable on September 30, 2024, to stockholders of record as of September 19, 2024.
Investor Takeaway
Broadcom’s continued success in AI-related semiconductor solutions, coupled with the seamless integration of VMware, positions the company for sustained growth. The significant year-over-year revenue increase, strong cash flow, and optimistic Q4 guidance make Broadcom a promising investment for those looking to capitalize on the expanding AI and cloud infrastructure markets. With a focus on AI, hyperscalers, and enterprise solutions, Broadcom’s outlook remains strong as it navigates evolving market demands.
This report underscores Broadcom’s potential as a resilient player in both semiconductor and software industries, making it a stock to watch for investors in the technology sector.
Source: AVGO
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