|Day's Range||42.42 - 45.90|
Broadcom Inc. shares slid Friday after half the analysts covering the chip maker raised their price targets but expressed concern about the company downplaying its wireless assets ahead of next year’s anticipated release of 5G technology.
Wall Street analysts are surprised over (AVGO)’s new direction, putting less emphasis on its wireless-chip businesses. On Thursday, the technology company reported adjusted earnings per share of $5.39 for its fiscal fourth quarter, in line with the Wall Street consensus estimate, according to FactSet. Broadcom generated revenue of $5.78 billion for the same quarter, a touch above the average forecast of $5.77 billion among analysts.
The three major U.S. stock market indexes fell, then rose, then dropped again as some details of an initial trade deal between the U.S. and China were unveiled in tumultuous fashion.
Susquehanna Financial Group analyst Christopher Rolland points out in a research note that (AVGO) (ticker: AVGO) disclosed Thursday in reporting fiscal fourth-quarter earnings that it lost “a mixed signal customer product” from its largest customer. Rolland said that while the comment could be a reference to wireless charging, it more likely involves the touch controller in the phone—and could be a win for Synaptics (SYNA), a San Jose, Calif., company that makes touchpads and similar components for phones and laptops. Apple never comments on its relationships with suppliers, and discourages its partners from commenting as well.
PulteGroup, Container Store, Oracle, Adobe and Broadcom highlighted as Zacks Bull and Bear of the Day
The major stock indexes were modestly higher in morning trade after taking an early hit from President Trump's latest tweet on the U.S.-China trade deal.
Broadcom stock is up slightly after the company posted better-than-expected sales Thursday afternoon and met earnings forecasts
Dow Jones futures slashed gains after China trade deal buzz sent the stock market to record highs. Adobe signaled a breakout on earnings. Broadcom, Costco, Oracle moved on results too.
Broadcom Inc. shares tick higher in the extended session Thursday after the chip maker’s outlook tops Wall Street estimates, and quarterly results are in-line.
Investing.com -- China stays mum on the reported U.S. trade deal offer, as analysts see Beijing afraid of getting caught in a trap. The pound and U.K. stocks soar after a convincing election victory for Boris Johnson's Conservatives that paves the way for a formal withdrawal from the EU by the end of January at the latest. And Broadcom (NASDAQ:AVGO) promises a better year ahead after suffering from the U.S. ban on exports of sensitive components to Huawei. Here's what you need to know in financial markets on Friday, 13th December.
(Bloomberg) -- Broadcom Inc. gave an annual sales forecast that signaled optimism that the chip industry has weathered the worst of the China-U.S. trade war, but shares dropped after the company said some units are losing orders, raising concerns about overall growth.Sales in fiscal 2020, which ends next November, will be $25 billion, plus or minus $500 million, the company said Thursday in a statement. That projection includes revenue from its purchase of a Symantec Corp. unit, and was in line with or better than estimates from some analysts who had also factored in that new division’s contribution.On a conference call with analysts, executives said Broadcom lost business from a big smartphone customer in one product area and warned that Wi-Fi chip sales will decline next year. The stock, which had gained on the initial report, slipped more than 2% in extended trading following the detailed outlook.Chief Executive Officer Hock Tan has built the company into one of the biggest in the semiconductor business through a string of acquisitions, and is now expanding into software. That gives Broadcom one of the widest reaches in technology, with clients including Apple Inc. and Samsung Electronics Co. in smartphones and some of the top data-center operators for networking components. The evaporation of some business from one of those big phone makers will hold back revenue gains, and the company will tightly control its investment in wireless and industrial chips, Tan said on the call.Apple is one of Broadcom’s largest customers for smartphone components, and earlier this year the two companies struck a deal to supply Apple’s products with radio frequency, or RF, chips for the next two years. Broadcom has also long supplied Apple with Wi-Fi components. But a wireless-charging component used in Apple’s iPhone for a few years from Broadcom was replaced in newer models by a part from STMicroelectronics NV, according to breakdowns of the handset’s parts by iFixit and others. That may be the lost business Broadcom disclosed.The company is targeting total semiconductor sales of $18 billion in 2020, Chief Financial Officer Tom Krause said on the call. The company’s core business -- chips used in networking, broadband and storage systems -- will grow about 7% to around $12 billion, he said. Wi-Fi chip revenue will decline from a total of $2.2 billion and mixed-signal chip revenue will drop by half to less than $500 million, he projected. The company is predicting enterprise software sales will rise to about $7 billion. Symantec revenue will grow from a base of around $1.8 billion, he said.Sales in the fiscal fourth quarter of 2019, which ended Nov. 3, rose 6.1% to $5.78 billion, the San Jose, California-based company said. Before certain items, profit was $5.39 a share. That compares with average analyst estimates for per-share profit of $5.38 on sales of $5.73 billion, according to data compiled by Bloomberg.Broadcom’s market value has swelled to $130 billion following Tan’s spree of deals, including his purchase of Symantec’s enterprise security business for $10.7 billion last month. A big chunk of the company’s products are used in China or sent through factories there on the way to becoming part of electronic devices sold around the world. Huawei Technologies Co., a Chinese equipment maker that has been called a security threat and was cut off from U.S. suppliers by the Trump administration, previously spent hundreds of millions of dollars a year on Broadcom chips.Tan, who has been among the most vocal chip-industry leaders in calling out the impact of the trade dispute between the U.S. and China, trimmed Broadcom’s revenue forecast earlier this year, shaving $2 billion from his original projections, citing declining orders amid the trade dispute. That’s made Broadcom’s stock a laggard. Its 29% gain this year compares with a 56% advance by the Philadelphia Stock Exchange Semiconductor Index.(Updates with details of unit performance predictions starting in third paragraph.)\--With assistance from Mark Gurman.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chipmaker and enterprise software firm Broadcom late Thursday beat Wall Street's targets for its fiscal fourth quarter. The Broadcom earnings report drove its stock lower in extended trades.
Broadcom Inc. (AVGO) delivered earnings and revenue surprises of 0.56% and 0.38%, respectively, for the quarter ended October 2019. Do the numbers hold clues to what lies ahead for the stock?
The outlook pointed to a weaker-than-expected wireless business, said Kinngai Chan, an analyst with Summit Insights Group. Broadcom, on a post-earnings call said that Symantec Corp's enterprise security unit, its latest $10.7 billion acquisition, is expected to contribute about $1.8 billion next year. The 2020 guidance was actually a little light on the Street as revenue from Symantec was expected to be about $2 billion, said Christopher Rolland, analyst with Susquehanna Financial Group.
Broadcom expects fiscal 2020 to be a good year for networking and RF chip sales. But it forecasts a major drop in its "mixed-signal custom" wireless chip sales to Apple.
A tentative agreement between the U.S. and China, as well as a predictable Fed has investors feeling good as they bid up stocks. Let's look at a few top stock trades for Friday. Top Stock Trades for Tomorrow No. 1: Broadcom (AVGO)Source: Chart courtesy of StockCharts.comWe were looking for a breakout in Broadcom (NASDAQ:AVGO) stock, but doing so in the same session ahead of earnings is risky. Shares rocketed through its prior highs and resistance, ripping to a high of around $330. Now what? Should shares pull back after reporting earnings, I would love to see prior resistance hold as support near $320. Should it fail, bulls will still be okay as long as AVGO can find support above $314. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere it has the rising 20-day moving average, as well as prior April and May resistance near $315. Below this area could bring up a test of the $300 level. * The 10 Worst Dividend Stocks of the Decade On the upside, it's hard to say where AVGO could rally to on a bullish earnings reaction -- the analysts certainly are bullish. Currently, there is a Fibonacci extension up at $349.65 based on the prior 52-week range. But most importantly, see that AVGO holds the breakout level or prior support at this point. Top Stock Trades for Tomorrow No. 2: Micron (MU)Source: Chart courtesy of StockCharts.com Micron (NASDAQ:MU) shares made a beautiful breakout on Wednesday and followed it with even more upside on Thursday. Investors will now want to see if shares can clear the $51 level and continue higher. Remember, Micron was trading north of $60 per share in 2018 and if it can regain momentum, a push higher certainly isn't out of the question. On a pullback, $48 and the prior downtrend (blue line) will need to hold as support. Top Stock Trades for Tomorrow No. 3: Advanced Micro Devices (AMD)Source: Chart courtesy of StockCharts.comTalk about a loaded top three picks, huh? Chips have been on fire, so it should come as little surprise that Advanced Micro Devices (NASDAQ:AMD) is working on the long side again. After hitting $41.79 last month, shares of AMD have cooled. However, the 20-day moving average continued to buoy the stock and on Thursday, shares broke out over downtrend resistance (blue line). Now, let's see if the stock can breakout over its prior highs. The stock failed at $41.75 in back-to-back sessions in November. A move over this mark could trigger a rally into the mid-$40s and possibly higher. On a pullback, see that the 20-day moving average continues to hold as support. Top Stock Trades for Tomorrow No. 4: Activision Blizzard (ATVI)Source: Chart courtesy of StockCharts.com It doesn't get much simpler for Activision Blizzard (NASDAQ:ATVI). With Thursday's move over $57, the stock is officially breaking out. I would consider the $56 to $57 area as the must-hold mark, but some bulls may be more specific and require ATVI stock to stay over the September high of $57.52. Either way, shares are breaking out and as long as prior resistance holds as support on a pullback, the bulls are okay on the long side. With the move now, bulls will look to fill the stock's November 2018 gap down. To do so completely will require a rally to $62.35. Top Stock Trades for Tomorrow No. 5: Ciena (CIEN)Source: Chart courtesy of StockCharts.comCiena (NYSE:CIEN) shares are rocketing higher, up almost 20% after reporting earnings. The move thrust shares over all of its major moving averages, as well as downtrend resistance (blue line). The rally also sent CIEN stock up through the $40 to $41 area, which has been significant over the past year. Now, see that it stays above this zone. In the middle of it -- at $40.66 -- is the 61.8% retracement. Below that and the 200-day moving average will be on the table. On the upside, see if Ciena stock can rally to the 78.6% retracement. Above puts range resistance near $45 to $46 in the cards. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post 5 Top Stock Trades for Friday: AVGO, MU, AMD appeared first on InvestorPlace.
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Broadcom's quarterly revenue narrowly beat estimates and earnings per share met consensus. Guidance for 2020 beat analyst estimates.
Investing.com - Broadcom (NASDAQ:AVGO) reported fourth quarter earnings that beat analysts' expectations on Thursday and revenue that topped forecasts.