|Bid||316.51 x 1100|
|Ask||317.00 x 1000|
|Day's Range||315.09 - 328.11|
|52 Week Range||155.67 - 331.58|
|Beta (5Y Monthly)||0.91|
|PE Ratio (TTM)||49.30|
|Earnings Date||Dec 05, 2019 - Dec 10, 2019|
|Forward Dividend & Yield||13.00 (4.21%)|
|Ex-Dividend Date||Mar 20, 2020|
|1y Target Est||301.44|
Semiconductor and enterprise software maker Broadcom saw its shares spike on Friday after delivering a reassuring earnings report, though its sales guidance for the current quarter was soft.
The major stock indexes were sharply higher early Friday after a strong jobs report. Slack plunged 19% on earnings.
Broadcom was upgraded to a buy recommendation by TheStreet.com's quantitative service. In this daily bar chart of AVGO, below, we can see that prices and our favorite indicators are all pointed higher. The On-Balance-Volume (OBV) line shows a moderate decline from February into March and then a subsequent rally to a new high.
Broadcom is jumping on earnings even though profit was in-line with expectations. Here's how to trade the stock now as it nears new highs.
Shares of Broadcom were rising Friday following its revenue beat on Thursday evening, and analysts on Wall Street wrote mostly bullish notes on the company's prospects. Broadcom shares rose 3.4% to $319.43 premarket Friday. First, the data center and storage markets will likely continue to see their current strength.
Stock futures rise as markets await the U.S. jobs report for May; the unemployment rate is forecast to rise to nearly 20%; Tesla's Elon Musk says it's time to break up Amazon.
Dow Jones futures: Coronavirus stock market rally sector rotation continued, with airlines soaring and growth names falling. Tesla is in the friend zone. Slack and RH led earnings movers.
Broadcom (AVGO) has reported an in-line April quarter, and guided to an in-line July quarter at $5.75B (consensus $5.8B). Shares in AVGO gained 1% in Thursday’s after-hours trading following the earnings release.Specifically, Q2 Non-GAAP EPS of $5.14 was in-line with consensus expectations, while GAAP EPS of $1.17 beat by $0.21. Revenue of $5.74B climbed 4% from the previous year, and topped Street estimates by $50M. Meanwhile Q2 adjusted EBITDA was $3.2B, again, coming in slightly higher than the $3.11B consensus.Semiconductor Solutions reported revenue of $4,027M (-1% y/y) but Infrastructure software revenue came in strong at $1,715M (+21% y/y).“Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19,” commented Hock Tan, CEO of Broadcom Inc. “Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless.”At the same time the company declared a $3.25/share quarterly dividend, in line with previous payouts, for a forward yield of 4.2%.“We generated record quarterly free cash flow of over $3 billion and reinforced our balance sheet, ending the quarter with over $9 billion of cash,” explained Tom Krause, CFO of Broadcom Inc. As a result, AVGO “remain[s] committed to maintaining our dividend while we navigate these unprecedented times.”Following the report Mizuho Securities analyst Vijay Rakesh reiterated his AVGO buy rating while ramping up his price target from $315 to $325 (5% upside potential).“We continue to see AVGO as well positioned, driven by 5G networking and wireless, software M&A, strong FCF, and dividends, with near-term COVID-19 headwinds subsiding” Rakesh told investors, adding that the company is currently trading at an attractive ~13.1x F21E (Oct) P/E.Likewise RBC Capital’s Mitch Steves boosted his price target from $300 to $340 noting that AVGO is seeing much more demand than it can currently supply for Q3. “AVGO is seeing strong uplift in demand from the ramp of next-generation deep learning inference chips” the analyst wrote, while demand from enterprise customers for data protection controllers has recovered and is showing strength.Overall, AVGO scores a bullish Strong Buy Street consensus, with 19 buy ratings offset by 2 hold ratings. However, the average analyst price target stands at $303, indicating downside potential of 2%. Shares in AVGO are trading down 2% year-to-date. (See AVGO stock analysis on TipRanks).Related News: Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal Ebay Lifts Quarterly Sales and Profit Forecast; Shares Jump To All-Time High Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G Expansion More recent articles from Smarter Analyst: * Micron's Growth Story Remains Intact, Says Analyst * Aurora Cannabis (ACB): The Stock Is Too Hot on U.S. CBD Entry * Billionaire Jim Simons Snaps Up These 3 Penny Stocks * Novavax Surging On $60M Funding For Covid-19 Vaccine Candidate
At this time for opening remarks and introductions, I would like to turn the call over to Beatrice Russotto, Director of Investor Relations of Broadcom, Inc. Please go ahead ma'am. Joining me on today's call are Hock Tan, President and CEO and Tom Krause, Chief Financial Officer of Broadcom.
(Bloomberg) -- Broadcom Inc., a major Apple Inc. supplier, suggested the latest iPhones will be launched later than usual this year.Hock Tan, chief executive officer of Broadcom, discussed a “major product cycle delay” at a “large North American mobile phone” customer, during an earnings conference call with analysts on Thursday.Tan often refers to Apple this way. This time, the executive said the delay will mean the bump in wireless revenue experienced by Broadcom will happen one quarter later than usual this year.“We are in,” Hock said, referring Broadcom components in the iPhone. “The question is timing.”“This year, we do not expect to see this uptick in revenue until our fourth fiscal quarter,” the CEO added. “So accordingly, we expect, our wireless revenue in Q3 will be down sequentially.”Apple is planning to release its next iPhone line multiple weeks later than usual, Bloomberg News previously reported. The company typically unveils its new iPhones in the second half of September, but has occasionally, like in the case of the iPhone X in 2017, launched major new models later in the year.Phone makers usually order components months ahead of product launches. Apple typically releases new versions of the iPhone in September. If it followed that time line, Broadcom would receive orders in the current quarter, which runs through July. The chipmaker said that’s not happening this year. “Because of product cycle delays the trough for our fiscal year will be Q3. This coming quarter,” Tan said. “Nothing has changed in terms of designs, nothing has changed in terms of the content,” including more 5G components, the CEO added. The delay to the new iPhone release is due to the Covid-19 pandemic, which has slowed Apple engineer travel to China to finalize the devices and required employees to mostly work from home in the early months of 2020.Broadcom’s Tan also warned about “supply constraints and an expected substantial reset in wireless” when the company’s results came out on Thursday. With much of the world’s population confined to their homes, handset demand has dropped.(Updates with CEO comment in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The chip giant is seeing strong demand from cloud and telco clients, but is also dealing with supply constraints and an apparent iPhone production ramp delay.
Chipmaker Broadcom late Thursday matched Wall Street's earnings target for its fiscal second quarter on higher-than-expected sales. The Broadcom earnings news pushed AVGO stock higher.
(Bloomberg) -- Broadcom Inc., a chipmaker that supplies Apple Inc. and other large electronics makers, gave a lackluster forecast, as weak demand for smartphone parts overshadowed rising orders from data center owners.Revenue in the three months ended in July will be $5.75 billion, plus or minus $150 million. That compares with an average analyst prediction of $5.77 billion, according to data compiled earlier on Thursday by Bloomberg.The San Jose, California-based company makes chips that filter radio signals and provide WiFi connections in iPhones and other smartphones. With much of the world’s population confined to their homes, handset demand has dropped. Broadcom is also a key supplier of switch chips, the complex semiconductors that manage data traffic in networking equipment, an area where demand is surging.Read more: Smartphone Shipments Projected to Fall a Record 12% in 2020“Looking ahead, our third-quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless,” Chief Executive Officer Hock Tan said in a statement.Tan explained that his “large North American smartphone customer” -- typically how he refers to Apple -- is undergoing a “product cycle delay.” That means the usual improvement in wireless-related orders that comes in the company’s fiscal third quarter, which runs through July, will now be seen in the following three-month period. This implies the debut of the next iPhone will come later than its usual September release. Phone makers typically order chips months in advance of building the devices.Balancing that weakness in smartphones, orders for chips used in data center gear have strengthened into the current period, Tan said. Bookings remain “extremely strong” he said. A bright spot for the industry has been the rush to buy equipment by the large cloud-computing providers, who are spending to increase their capacity in an effort to meet a flood of extra traffic caused by the boom in remote work.Three months ago, Broadcom withdrew its annual sales forecast and gave weak near-term guidance, citing the coronavirus pandemic. Tan said in March that the supply chain hadn’t been hurt by the lockdown. Then in April, the company told customers to place orders at least six months ahead of time because of shelter-in-place rules in Malaysia, Thailand, Singapore and the Philippines. That supply chain is now on the mend, he said.Read more: Broadcom Sounds Alarm on Unforeseen Tech Industry DisruptionsBroadcom, one of the latest to report earnings in the tech sector, is giving an up-to-date view on demand as the economy crumbles in the midst of the pandemic. The stock gained about 1% in extended trading following an initial decline. The shares closed at $308.89 earlier in New York.The company, one of the world’s largest chipmakers, has branched out into mainframe computer and security software. Tan assembled Broadcom in a string of acquisitions, giving its products a role in everything from powerful data center networking gear to smartphones.Net revenue in the fiscal second quarter rose 4% to $5.74 billion, the company said. Before certain items, profit was $5.14 a share.(Updates with comments from CEO throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Broadcom Inc. shares slip in the extended session Thursday after the semiconductor and software company’s quarterly results were in line with Wall Street estimates and its outlook range bookends the analyst consensus.
“Second-quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19,” Broadcom CEO Hock Tan said in a statement.
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Broadcom Inc. posted better-than-expected revenue and earnings in line with analysts expectations after the bell Thursday. "Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19," said Hock Tan, president and CEO of Broadcom, in a statement. Broadcom offered third-quarter adjusted EBITDA guidance of $3.22 billion plus or minus $75 million, or 56% of revenue at the midpoint of guidance.
The company forecast fiscal third-quarter revenue of about $5.75 billion, plus or minus $150 million. "We would normally expect to see a double-digit sequential uplift in revenue from the ramp of next-generation phone at our large North American mobile phone customer," Chief Executive Hock Tan said on a conference call. Tan cited a "major product cycle delay in wireless" without naming the customer, but Broadcom got about a fifth of its revenue from Apple in its most recent fiscal year and in January entered into to two multi-year agreements worth as much as $15 billion in revenue to supply Apple with wireless components.
Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its second quarter of fiscal year 2020, ended May 3, 2020, provided guidance for the third quarter of its fiscal year 2020 and announced its quarterly dividends.
The Relative Strength (RS) Rating for Broadcom jumped into a new percentile Thursday, with an increase from 78 to 81. Broadcom is currently nearing a potential buy zone on a MarketSmith Weekly Chart. As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
NEW YORK, NY / ACCESSWIRE / June 4, 2020 / Broadcom, Inc. (NASDAQ:AVGO) will be discussing their earnings results in their 2020 Second Quarter Earnings call to be held on June 4, 2020 at 5:00 PM Eastern ...