Broadcom Limited (AVGO) - NASDAQ
  • Tue, Jul. 5, 10:18 AM
    • Cirrus Logic (NASDAQ:CRUS) is off 7.4% and Skyworks Solutions (NASDAQ:SWKS) down 5.6% as Pacific Crest downgrades both to Sector Weight amid some disappointing iPhone supply chain forecasts.
    • Qorvo (QRVO -5.5%) and InvenSense (INVN -5.1%) are down as well.
    • Pac Crest has a fair value range of Cirrus Logic of $33-$36 (vs. its previous close of $38.04) and for $60-$67 on Skyworks (vs. previous close of $62.60).
    • It also cut price targets on Analog Devices (ADI -1.7%) to $60 from $62 (7.7% upside); Broadcom (AVGO -2.5%) to $180 from $185 (19.7% upside) and Qualcomm (QCOM -1.3%) to $59 from $61 (12.8% upside).
    • "Our lowered estimates reflect a much more disappointing second-half 2016 iPhone 7 ramp than what we had previously expected, as feedback from Asia indicates units are expected to be down 15% to 20% as compared to the iPhone 6s, as Apple appears to be taking a much more cautious view of the ramp," the analysts wrote.
    | Tue, Jul. 5, 10:18 AM | 6 Comments
  • Fri, Jun. 3, 9:24 AM
    • Broadcom (NASDAQ:AVGO) is up 7% premarket after a solid fiscal Q2 beat on profits, followed by price target raises from analysts across the board.
    • Some of the highest ground was staked out by SunTrust (Buy), which raised its target to $211 from $189, implying 36% upside.
    • Stephen Chin of UBS pointed to wireless sales guidance as well as impressive sales growth in wireline (estimated up 15% sequentially). Supply constraints in wireline may be holding down that segment's guidance, but that's likely due to higher than expected networking demand, he writes. The firm raised its price target to $205 from $190.
    • Meanwhile, Cowen says that the earnings call "reinforced and validated our conviction" of Broadcom as its top pick since a recent initiation. The company's firing on all cylinders and being "very strategic" about divestments while paying down debt to prepare for M&A opportunities, Tim Arcuri says; he's bumped the firm's price target to $200 from $190.
    • Other target hikes: Goldman Sachs (Buy) raised to $185 from $171; Morgan Stanley (Overweight) raised to $191 from $182; Barclays (Overweight) raised to $185 from $170.
    | Fri, Jun. 3, 9:24 AM | 1 Comment
  • Fri, Jun. 3, 9:16 AM
    | Fri, Jun. 3, 9:16 AM | 26 Comments
  • Thu, Jun. 2, 5:35 PM
    • Top gainers, as of 5.25 p.m.: BV +9.3%. AMBA +9.1%. AVGO +6.1%. INVN +5.3%. COO +4.9%
    • Top losers, as of 5.25p.m.: ZUMZ -9.0%. BFK -5.5%. EGO -2.3%. STO -2.3%. TCK -1.7%.
    | Thu, Jun. 2, 5:35 PM | 12 Comments
  • Thu, Jun. 2, 4:31 PM
    • Helping Broadcom (NASDAQ:AVGO) deliver a healthy FQ2 EPS beat in spite of just a slight revenue beat: Non-GAAP gross margin was 60%, down 100 bps Q/Q and Y/Y, but above a guidance midpoint of 59%. FQ3 GM guidance is at 60% (+/- 1%).
    • Wired infrastructure products (optical components, networking/telecom chips, set-top and modem chips) were 58% of revenue, wireless communications (RF components and Wi-Fi/Bluetooth combo chips) was 22%, enterprise storage (storage adapter cards and controller chips) was 15%, and industrial/other 5%. Reported Q/Q and Y/Y growth rates are skewed by the Broadcom/Avago merger, which closed at the start of FQ2.
    • Non-GAAP operating expenses were $809M (22% of revenue), and (with the help of post-merger cost cuts) are expected to remain at $809M in FQ3. Due to the debt taken on to pay for the merger, Broadcom ended FQ2 with $2B in cash and $15B in debt.
    • The company has declared a $0.50/share quarterly dividend. The next dividend is patable on June 30 to shareholders on record as of the June 17 close.
    • AVGO +6.5% after hours to $165.01, making new post-merger highs along the way. Pre-earnings expectations were low due to worries about weak iPhone sales.
    • Broadcom's results/guidance, earnings release
    | Thu, Jun. 2, 4:31 PM | 5 Comments
  • Thu, Jun. 2, 4:24 PM
    • Broadcom (NASDAQ:AVGO) declares $0.50/share quarterly dividend, 2% increase from prior dividend of $0.49.
    • Forward yield 1.29%
    • Payable June 30; for shareholders of record June 17; ex-div June 15.
    | Thu, Jun. 2, 4:24 PM
  • Thu, Jun. 2, 4:05 PM
    • Broadcom (NASDAQ:AVGO): FQ2 EPS of $2.53 beats by $0.15.
    • Revenue of $3.56B beats by $10M.
    • Expects FQ3 revenue of $3.75B (+/- $75M) vs. a $3.71B consensus.
    • Shares +4.8% after hours.
    • Press Release
    | Thu, Jun. 2, 4:05 PM | 8 Comments
  • Wed, Jun. 1, 5:35 PM
    | Wed, Jun. 1, 5:35 PM | 15 Comments
  • Tue, May 24, 3:37 PM
    • Xilinx (NASDAQ:XLNX) is up 5.9% this afternoon on heavy volume after a StreetInsider report saying the company has drawn a $15B takeover offer, but from a mystery suitor.
    • The company has been considered the only large-cap chipmaker with the attributes of a good target, after Intel's purchase of Altera. Apple suppliers including Qualcomm (NASDAQ:QCOM) or Broadcom (NASDAQ:AVGO) are the most likely suitors for Xilinx.
    • Xilinx used yesterday's analyst day to reiterate guidance for fiscal 2017 (sales growth of 4-8%, opex growth of 7-9%) and prompt strong bullishness from Pacific Crest. Analyst John Vinh sees the firm taking share in field-programmable gate arrays from Intel's Altera, which has faced delays and has "already lost at 20 nm and 14 nm."
    • Xilinx is expecting $750M in incremental revenue over the next five years, a modest 6% in compound annual growth. "Of the $750 million, $500 million is expected to be from market expansion, while $250 million should be from PLD share gains. This would imply ~$3.25 in EPS, which at 20x suggests fair value of $65," Vinh writes.
    • That $65 value would be 37% upside from today's (higher) price; Vinh has a price target of $55 (16% upside).
    • William Blair's Anil Doradla thought the overall tone was good but "lacked conviction" and was light on comment about the company's key wireless/wireline segments. He's maintaining an Outperform rating.
    | Tue, May 24, 3:37 PM | 22 Comments
  • Thu, May 12, 10:53 AM
    • A 2.4% decline in Apple (NASDAQ:AAPL) -- making a fresh 52-week low today -- is being tied to the Nikkei report pointing to a rough year for iPhone suppliers.
    • Nikkei's report said that chip shipments from Taiwan Semiconductor Manufacturing (TSM -1.2%) -- will be 70-80% of 2015 second-half levels.
    • CNBC is saying that Apple's decline today makes Google parent Alphabet the largest U.S. company by market value, at about $498.6B.
    • Meanwhile, among Apple's suppliers, steep declines are prevalent today: AVGO -2.2%, SWKS -3.9%, QRVO -2.9%.
    • Shares in Apple are down 14.3% YTD, and down 28.4% over the past 12 months.
    • Now read Apple: Nikkei Declares iPhone 7 Dead Before Arrival »
    | Thu, May 12, 10:53 AM | 67 Comments
  • Wed, May 11, 12:31 PM
    • Thanks to a continuing slump in demand for premium smartphones and a lack of groundbreaking features for the upcoming iPhone 7, Taiwan's tech suppliers will get significantly fewer orders in H2 than the previous year, according to the Nikkei Asian Review.
    • "The traditional peak season this year will not be able to compare to the past few years," says one source. Another source says for Taiwan Semiconductor Manufacturing Company (TSM -0.2%) - the sole supplier for the A10 chips used in the iPhone 7 - its iPhone 6s and iPhone 7 chip shipments in H2 will be just 70-80% of 2015's H2 levels.
    • Others with interest: AVGO, SWKS, QRVO
    | Wed, May 11, 12:31 PM | 13 Comments
  • Mon, May 2, 7:27 AM
    • April monthly performance was: 0%
    • AUM of $359M
    • 52-week performance vs. the S&P 500 is: 0%
    • No dividends were paid in April
    • Top 10 Holdings as of 12/31/2015: Teva Pharmaceutical Industries Ltd ADR (TEVA): 2.13%, Sky PLC (OTCQX:BSYBF): 1.98%, Gilead Sciences Inc (GILD): 1.8%, Apple Inc (AAPL): 1.78%, Newell Rubbermaid Inc (NWL): 1.54%, Amcor Ltd (OTC:AMCRF): 1.48%, CGI Group Inc Class A (GIB): 1.47%, Avago Technologies Ltd (AVGO): 1.46%, CK Hutchison Holdings Ltd (OTCPK:CKHUF): 1.43%, RELX PLC (OTC:RLXXF): 1.43%
    | Mon, May 2, 7:27 AM | 1 Comment
  • Thu, Apr. 28, 11:28 AM
    • Along with its Q1 results, Cypress Semi (CY +2.7%) announces it's buying Broadcom/Avago's (AVGO +1.1%) wireless IoT chip unit, which sells, Wi-Fi, Bluetooth, and Zigbee chips, for $550M in cash. Cypress is also acquiring Broadcom's WICED IoT brand and related SDK/developer ecosystem.
    • With the Broadcom unit having revenue of $189M during the last 12 months, Cypress is paying 2.9x trailing sales. The deal is expected to close in Q3.
    • Cypress: "The acquisition strengthens Cypress's position in key embedded systems markets, such as automotive and industrial, and establishes it as a leader in the high-growth consumer IoT market, a segment that includes wearable electronics and home automation solutions."
    • Broadcom notes the deal doesn't cover its wireless connectivity offerings for phones, notebooks, set-tops, and Wi-Fi access points. The company has said it's looking to divest some assets in the wake of the Broadcom/Avago merger, as it tries to streamline its offerings and pay off some of the debt taken on to help finance the merger.
    • Separately, Cypress states long-time CEO T.J. Rodgers will step down this week. While the board searches for Rodgers' successor, daily operations will be handled by an Office of the CEO featuring several senior execs.
    • Rodgers: "This March, Valeta and I celebrated my 68th birthday in Mexico. Upon reflection, while I am still passionately interested in Element 14, silicon, I have always planned not to be spending most of my time in the last decade of my career immersed in the details of the operations ... And, to be completely candid, the board and even the executive staff have urged me to bring new blood into operations." He'll continue to work on some projects for Cypress.
    • Cypress is guiding for Q2 revenue of $440M-$470M and EPS of $0.10-$0.14, in-line with a consensus of $454.8M and $0.11. Both Cypress and Broadcom are higher.
    | Thu, Apr. 28, 11:28 AM | 7 Comments
  • Tue, Apr. 26, 5:19 PM
    • Apple (down 7.8% after hours) missed FQ2 estimates and guided for FQ3 revenue of $41B-$43B, below a $47.32B consensus. iPhone unit shipments fell 16% Y/Y to 51.2M, and iPad shipments 19% to 10.3M. Both figures were a little better than expectations. However, guidance points to another large Y/Y iPhone decline in FQ3.
    • Cirrus Logic (down 4.2%) beat FQ4 estimates, but guided for FQ1 revenue of $220M-$250M, below a $257.5M consensus. Apple accounted for 62% of FQ4 revenue, and another customer (believed to be Samsung) 17%.
    • Skyworks (NASDAQ:SWKS) is down 5.2% after hours. Qorvo (NASDAQ:QRVO) is down 5%. Broadcom (NASDAQ:AVGO) is down 3.8%. Qualcomm (NASDAQ:QCOM) is down 2.4%. NXP (NASDAQ:NXPI), which rallied earlier today thanks to a Q1 beat and solid Q2 guidance is down 2.5%. Nasdaq futures are down 0.9%.
    | Tue, Apr. 26, 5:19 PM | 27 Comments
  • Mon, Apr. 18, 2:23 PM
    • A look at RF chip suppliers ahead of a possible iPhone 7 leads Cowen's Timothy Arcuri to favor Broadcom (AVGO +0.4%), and note that it, Skyworks (SWKS -0.4%) and Qorvo (QRVO -1%) can benefit even if iPhone growth slows, as some are fretting.
    • He's launched coverage on Broadcom at Outperform, with a $190 price target, implying 22% upside from current pricing. Skyworks ($78 target; 4.3% upside) and Qorvo ($50 target; 5.8% upside) get Market Perform ratings.
    • Shares in Apple (NASDAQ:AAPL) fell on Friday after Nikkei reported that Q1 production cuts would continue into Q2, and are down another 2.4% today. Morgan Stanley has warned that the iPhone 7 could see delays as the entire supply chain of the phone could be affected by a Japanese earthquake and aftershocks.
    • The three chipmakers have heavy exposure to Apple, though less so at Broadcom after its merger with Avago. And Arcuri says worries of Apple's production cuts are "overblown."
    • Now read My Best Large Cap Stocks Portfolio: Consider Broadcom »
    | Mon, Apr. 18, 2:23 PM | 17 Comments
  • Mon, Apr. 4, 7:31 AM
    • March monthly performance was: +8.07%
    • AUM of $331M
    • 52-week performance vs. the S&P 500 is: -11%
    • No dividends were paid in March
    • Top 10 Holdings as of 12/31/2015: Teva Pharmaceutical Industries Ltd ADR (TEVA): 2.13%, Sky PLC (OTCQX:BSYBF): 1.98%, Gilead Sciences Inc (GILD): 1.8%, Apple Inc (AAPL): 1.78%, Newell Rubbermaid Inc (NWL): 1.54%, Amcor Ltd (OTC:AMCRF): 1.48%, CGI Group Inc Class A (GIB): 1.47%, Avago Technologies Ltd (AVGO): 1.46%, CK Hutchison Holdings Ltd (OTCPK:CKHUF): 1.43%, RELX PLC (OTC:RLXXF): 1.43%
    | Mon, Apr. 4, 7:31 AM
Company Description
Broadcom Ltd. designs, develops and supplier of a broad range of analog and digital semiconductor connectivity solutions. It serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. The company product's includes data center... More
Sector: Technology
Industry: Semiconductor - Broad Line
Country: United States