You guys don't get it. QCOM is killing BRCM, APPLE is switching to QCOM; NOKIA is switching to WINMobils which QCOM deminates; QCOM bought a big company with WiFi competing with BRCM. BRCM is just being finished. BRCM is going down to 20s without a doubt. Friday is just a bit dead cat act... Don't believe? compate RIMM with BRCM..
I just let this analyst to reply to you as follow:
We are lowering revenue to reflect wireless weakness, but raising EPS to reflect cost control - BRCM multiple much more leveraged to revenue growth than EPS. Despite after mkt stock decline, weakness in wireless NOT a BRCM specific issue - TXN, QCOM, STE all guided C2Q below seasonal - transitional period for large customers - either new models preparing to ramp, or SKUs without market success. NT revenue weakness at least matched by spending controls, 2H revenue should accelerate based on leverage to AAPL (iPad, iPhone, iTV), Tablets, Connected Home, Bandwidth, 10GigE, VDLS, DSLAM etc. Post-close stock is trading at 11.7x our 2012 EPS versus a 5 year range of 14-24x.