(Reuters) – Broadcom Inc (AVGO.O) forecast current-quarter revenue above Wall Street estimates on Thursday, encouraged by the upcoming 5G phone launches and strong demand for its data-center chips from the growing remote work market.
The company forecast fourth-quarter revenue to be $6.4 billion, plus or minus $150 million. Analysts on average were expecting revenue of $6.18 billion, according to IBES data from Refinitiv.
The pandemic-led shift to work-from-home has fired up demand for infrastructure such as data centers at a time when the semi-conductor industry is gearing up for the launch of 5G phones that use higher priced chips.
Apple Inc (AAPL.O), which accounted for about a fifth of Broadcom’s revenue in 2019, is expected to launch its much-anticipated 5G-enabled iPhone in October.
Broadcom posted a 5.6% rise in third-quarter revenue to $5.82 billion, ahead of estimates of $5.76 billion.
Net income attributable to common stock fell to $614 million, or $1.45 per share, from $715 million, or $1.71 per share, a year earlier.
Excluding items, the company reported a profit of $5.40 per share, topping analysts’ average estimate of $5.24.
Shares of the company, which have gained about 11% this year, rose 1.7% in extended trading.