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Broadcom Corp. (BRCM) is scheduled to report its Q2 2012 results on July 24, 2012, after the bell. The street expects EPS and revenue of $0.67 and $1.95B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from BRCM and the news from its closest competitors.

Broadcom Corp. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.65 EPS, beating analyst estimates of $0.55.

Broadcom Corp. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.67 based on 35 analysts' estimates, down from $0.72 a year ago. Revenue estimates are $1.95B, up from $1.80B a year ago. The median target price by analysts for the stock is $42.50.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 27, 2012, Cantor Fitzgerald initiated Buy rating for the company.
  • On June 26, 2012, Northland Securities initiated Outperform rating for the company.
  • On May 2, 2012, Mizuho reiterated Buy rating for the company.
  • On May 2, 2012, Barclays reiterated Overweight rating for the company.
  • On March 11, 2012, Avian initiated Positive rating for the company.
  • On February 20, 2012, Auriga upgraded the company from Hold to Buy.
  • On February 13, 2012, The Benchmark Company downgraded the company from Buy to Hold.
  • On February 1, 2012, Deutsche Bank reiterated Buy rating for the company.
  • On February 1, 2012, Canaccord Genuity initiated Buy rating for the company.
  • On February 1, 2012, Barclays Capital reiterated Overweight rating for the company.
  • On January 31, 2012, Auriga downgraded the company from Buy to Hold.

Latest News

  • On July 5, 2012, Broadcom Corporation And Emulex Corporation announced that the companies have entered into a partial settlement and worldwide patent license agreement relating to the patent litigation in the U.S. Federal District Court in Santa Ana, California.
  • On July 3, 2012, Dow Jones reported that MIPS Technologies Inc. has signed a $26.5 million agreement that allows Broadcom Corp. to license its patents. Additionally, Broadcom--a semiconductor technology provider and MIPS' customer--has extended its license of the Company's architecture and core licenses.
  • On June 27, 2012, Broadcom Corporation announced that Wi-Fi Alliance selected Broadcom for its Wi-Fi CERTIFIED Passpoint Test Bed.
  • On May 1, 2012, Broadcom Corporation announced that for second quarter of 2012, it expects net revenue to be roughly $1.9 billion to $2.0 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $1.9 billion for second quarter of 2012.
  • On April 5, 2012, Broadcom Corporation announced it has completed its acquisition of BroadLight, Inc., a leading provider of highly integrated networking and fiber access PON (Passive Optical Network) processors.
  • On March 21, 2012, Broadcom Corporation announced it has signed a definitive agreement to acquire BroadLight, Inc., a Delaware corporation with an Israel-based subsidiary.
  • On March 20, 2012, Broadcom Corporation announced that Sumavision, a provider of video delivery solutions is deploying its DOCSIS-based Ethernet over Coax (EOC) cable architecture to Chinese cable operators.
  • On February 17, 2012, Broadcom Corporation announced that it has completed its $3.7 billion acquisition of NetLogic Microsystems, Inc.
  • On January 31, 2012, Broadcom Corporation announced that its Board of Directors has approved an 11% increase in the quarterly cash dividend to $.10 per share ($.40 per share on an annual basis) payable to holders of the Company's Class A and Class B common stock.
  • On January 31, 2012, Broadcom Corporation announced that for first quarter of 2012, it expects net revenue to be roughly $1.7 billion to $1.8 billion, the midpoint of which is about 2 points better than mix-adjusted seasonality.

Competitors

EZchip Semiconductor (EZCH), LSI Corporation (LSI), Marvell Technology Group (MRVL), QUALCOMM Incorporated (QCOM), and Texas Instruments (TXN) are considered major competitors for Broadcom and the table below provides the key metrics for these companies and the industry.

Broadcom Corp. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)BRCM Chart

BRCM data by YCharts

Competitors' Latest Development

  • On July 17, 2012, LSI Corporation announced that its 12Gb/s SAS technology has been selected by Xyratex to power its next-generation storage systems. Xyratex will include the LSI 12Gb/s I/O controller and expander, featuring DataBolt technology, to provide customers with leading-edge solutions to handle the scale and performance requirements brought on by rapidly growing storage demands.
  • On June 27, 2012, QUALCOMM Inc. and Akamai Technologies, Inc. announced that the two companies are collaborating on the implementation of new protocol enhancements for mobile devices.
  • On June 18, 2012, QUALCOMM Inc. announced that it has acquired Summit Microelectronics (Summit), a developer and provider of programmable power integrated circuits based in Sunnyvale, CA. All employees of Summit Microelectronics have joined Qualcomm's CDMA Technologies division.
  • On June 11, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it currently expects revenue to be in the range of $3.28-3.42 billion compared with the prior range of $3.22-3.48 billion and EPS to be in the range of $0.32-0.36 compared with the prior range of $0.30-0.38.
  • On May 24, 2012, Reuters reported that Bharti Airtel Limited agreed to buy a 49% stake in Qualcomm Inc's (QCOM.O) fourth-generation (4G) broadband venture in the country for $165 million.
  • On May 16, 2012, Reuters reported that Bharti Airtel Limited is in advanced talks to buyout the Indian partners of QUALCOMM Inc. in a fourth-generation (4G) broadband venture in the country.
  • On April 25, 2012, LSI Corporation announced that for second quarter of 2012, it expects revenues from continuing operations in the range of $630-$670 million GAAP income from continuing operations in the range of $0.03-$0.13 per share Non-GAAP income from continuing operations in the range of $0.15-$0.21 per share.
  • On April 23, 2012, Imagination Technologies Group plc announced that it has signed a license agreement with Qualcomm Incorporated, for certain IP from Imagination's Ensigma UCC broadcast, communications and connectivity IP family.
  • On April 23, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it expects revenue to be in the range of $3.22-$3.48 billion and Earnings per share (EPS) to be in the range of $0.30-$0.38. The second quarter's results will be negatively affected by about $100 million of acquisition charges and about $10 million of restructuring charges.
  • On April 18, 2012, QUALCOMM Inc. announced that for the third quarter of 2012, it expects revenues of $4.45-$4.85 billion, non-GAAP diluted earnings per share to be $0.83-$0.89 and GAAP EPS to be $0.67-$0.73. For fiscal 2012, it expects revenues of $18.7-$19.7 billion, non-GAAP diluted earnings per share to be $3.61-$3.76 and GAAP EPS to be $3.41-$3.56. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $4.80 billion, EPS of $0.90 for third quarter of 2012; revenue of $19.4 billion and EPS of $3.77 for fiscal 2012.
  • On April 14, 2012, Texas Instruments Incorporated announced that it will become a component of the NASDAQ-100 Index and the NASDAQ-100 Equal Weighted Index prior to market open on April 23, 2012.
  • On April 3, 2012, QUALCOMM Inc. announced a quarterly cash dividend of $0.25 per common share, payable on June 20, 2012, to stockholders of record at the close of business on June 1, 2012.
  • On March 26, 2012, Marvell Technology Group announced that it has received notification of an unsolicited mini-tender offer by TRC Capital Corporation (TRC) to purchase up to 6 million shares of Marvell Technology Group common stock, or approximately 1% of the Company's outstanding common stock, at a price of $15 per share.
  • On March 14, 2012, LSI Corporation updated first quarter 2012 guidance and expects revenue to be in the range of $585-$615 million, up from $550-$590 million, GAAP income from continuing operations per share in the range of $0.06-$0.10 per share and non-GAAP income from continuing operations per share in the range of $0.12 to $0.16 per share .
  • On March 12, 2012, Texas Instruments Incorporated and iRobot Corp announced a partnership to develop robotic technologies using TI's smart multicore OMAP platform. The two companies will achieve this vision by leveraging iRobot's long history in advancing the field of robotics and TI's strength in applications processors and related technologies.
  • On March 8, 2012, Texas Instruments Incorporated announced that for the first quarter of 2012, it lowered its expected ranges for revenue and earnings per share . The reductions are due to lower demand for Wireless products.
  • On March 6, 2012, QUALCOMM Inc. announced that its Board of Directors has approved a 16% increase in the Company's quarterly cash dividend and, effective immediately, a new $4.0 billion stock repurchase program to replace the prior $3.0 billion stock repurchase program, which had $948 million of repurchase authority remaining, net of put options outstanding.

Technical Overview


The stock has a market capitalization of $16.31B and is currently trading at $29.60 with a 52 week range of $27.59 - $39.66. The stock's year-to-date performance has been 1.40%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Broadcom Corporation Q2 Earnings Preview