Things Are Looking Up for Broadcom
Shares of Broadcom rose early Thursday after it released its most recent quarterly results late on Wednesday.
When Broadcom Ltd. (NASDAQ: AVGO) released its most recent quarterly results after the markets closed on Wednesday, the firm posted $4.59 in earnings per share (EPS) on $4.84 billion in revenue. Consensus estimates had called for $4.50 in EPS on revenue of $4.82 billion. The fiscal fourth-quarter of last year reportedly had EPS of $4.10 and $4.46 billion in revenue.
Broadcom completed its acquisition of Brocade Communications on November 17, 2017. The results for this quarter do not include any contribution from Brocade.
In terms of the guidance for the fiscal first quarter, the company expects to see net revenues in the range of $5.225 billion to $5.375 billion, with a gross margin of 64% to 65%. The consensus estimates call for $4.40 in EPS and $4.83 billion in revenue for the quarter.
On the books, Broadcom’s cash and short-term investment balance at the end of the fourth fiscal quarter totaled $11.2 billion, up from $5.45 billion at the end of the prior quarter.
[nativounit]
Hock Tan, president and CEO of Broadcom, commented:
On the heels of very strong fiscal 2017 financial results, and continuing momentum into the new fiscal year, we are increasing capital returns to our shareholders and have raised our interim quarterly dividend by 72%. We also closed the acquisition of Brocade early in the first fiscal quarter of 2018, adding to our very successful track record of highly accretive M&A.
Shares of Broadcom were up about 4% in Thursday’s premarket but were last seen at $270.97, or less than 3% higher on the day. The consensus analyst price target is $301.39 and the 52-week trading range is $167.51 to $285.68.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
