Broadcom's Strong 2019 Sales Forecast Sends Shares Higher

Ian King, Bloomberg News

A Broadcom Corp. touch screen digitizer integrated circuit (IC) chip, center, of an Apple Inc. iPhone 6 smartphone in seen in an arranged photograph in Bangkok, Thailand, on Saturday, Feb. 3, 2018. , Bloomberg

(Bloomberg) -- Broadcom Inc., a key supplier of iPhone components, gave a strong sales forecast for next year.

Revenue will be about $24.5 billion in the 2019 fiscal year, the San Jose-based company said Thursday in a statement. Analysts had projected sales of $22.45 billion, according to the average of estimates compiled by Bloomberg.

While the outlook for sales of the iPhone is weighing on other chipmakers’ earnings, Broadcom has been able to maintain growth via strong orders from cloud providers such as Alphabet Inc.’s Google and Amazon.com Inc. who are continuing to pour investment into their data centers.

Shares rose more than 5 percent in extended trading after the results were released. Earlier, the stock closed at $227.24 in New York, leaving them down 12 percent this year.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net

To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Molly Schuetz, Alistair Barr