Today’s Research Reports on Trending Tickers: Qualcomm and Broadcom
NEW YORK, NY / ACCESSWIRE / February 1, 2018 / Qualcomm shares were entering red territory in after-hours trading despite beating in its first quarter earnings report. It was the forecast for the second quarter that had traders concerned. Shares of Broadcom headed higher after it made its own pleasant forecast for its first quarter earnings.
RDI Initiates Coverage on:
QUALCOMM Incorporated
https://rdinvesting.com/report/?ticker=QCOM
Broadcom Limited
https://rdinvesting.com/report/?ticker=AVGO
QUALCOMM shares were soaring on Wednesday but pulled back a little in after-hours trading after the company released earnings. Though earnings for the first quarter topped expectations, the forecast for the second quarter were dreary. The stock closed up 1.88% on nearly 14 million shares traded and started heading south after-hours. For the first quarter, the chip making company reported EPS of 98 cents, way ahead of the 91 cents that analysts had been expecting. Revenue at $6.07 billion was also ahead of the $5.93 billion that Wall Street was waiting for. The company's forecast for the second quarter are below what analysts are waiting for. The company expects revenue of $4.8 billion to $5.6 billion in Q2 and EPS of 65 to 75 cents. Analysts were anticipating EPS of 85 cents and revenue of $5.58 billion. Qualcomm has been against a $103 billion takeover by Broadcom and is focusing on its $38 billion dollar acquisition of NXP Semiconductors, an automotive chip maker. The company's CEO also remarked on the ongoing battle with Apple, which has sued the company last January for allegedly overcharging for chips and refusing to pay its promised rebates. Steve Mollenkopf remarked, "We remain open to finding a path to resolution (with Apple)."
Access RDI's QUALCOMM Incorporated Research Report at:
https://rdinvesting.com/report/?ticker=QCOM
Broadcom shares closed up nearly 3% on Wednesday on a little over 8 million shares traded. Shares advanced after the company pre-announced better than expected earnings. For the first quarter of fiscal year 2018 ending February 4th, 2018, the company has forecast non-GAAP net revenue in the range of $5,300 - $5,350 million and non-GAAP fully diluted EPS of $5.10 per share. For the second quarter, Broadcom is expecting non-GAAP net revenue in the range of $5,000 million, plus or minus $75 million. CEO and President Hock Tan commented, "Our first quarter results are tracking towards the higher end of our expectations as we continue to execute on our business model. Looking ahead to our second fiscal quarter, strong data center demand for our wired and enterprise storage products and a seasonal pick up in broadband is expected to offset a greater than seasonal decline in wireless. As a result, we currently forecast on a normalized 13-week quarter basis, that second quarter revenue will be roughly flat to the previous quarter." Broadcom has made an offer for telecommunications equipment giant Qualcomm. According to Cowen & Co.'s Karl Ackerman, who has an Outperform rating on the stock, and a $315 price target, the potential deal "is all that matters." Qualcomm has a shareholder meeting on March 6th.
Access RDI's Broadcom Limited Research Report at:
https://rdinvesting.com/report/?ticker=AVGO
Our Actionable Research on QUALCOMM Incorporated (NASDAQ: QCOM) and Broadcom Limited (NASDAQ: AVGO) can be downloaded free of charge at Research Driven Investing.
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