Broadcom Limited (AVGO) - NASDAQ
  • Dec. 2, 2014, 5:35 PM
  • Nov. 26, 2014, 2:52 PM
    • Chip stocks are outperforming after Analog Devices (ADI +5.2%) beat FQ4 estimates and offered in-line FQ1 guidance. The Philadelphia Semi Index (SOXX +1.9%) has made new highs.
    • Notable gainers include many analog/mixed-signal and telecom IC firms: TXN +3%. LLTC +2.7%. SMTC +3.1%. ISIL +3.3%. SWKS +3.7%. AVGO +2.9%. OVTI +3.2%. FSL +3.1%. EZCH +2.5%. XLNX +2.3%. ALTR +2.1%. MX +4.3%. PMCS +2.7%. BRCM +2%.
    • On its CC (transcript), ADI noted its telecom equipment chip sales are holding up well in spite of weak capex, aided by the fact its dollar content for 4G base stations is "at least 20% to 30% better" than for 3G base stations. The company also mentioned its lead times were stable in FQ4.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Nov. 26, 2014, 2:52 PM | 3 Comments
  • Nov. 19, 2014, 12:39 PM
    • Broadcom Corporation (NASDAQ:BRCM) declares $0.12/share quarterly dividend, in line with previous.
    • Forward yield 1.14%
    • Payable Dec. 15; for shareholders of record Dec. 1; ex-div Nov. 26.
    | Nov. 19, 2014, 12:39 PM
  • Nov. 13, 2014, 8:47 AM
    • "We expect product cycles in 2H15/16 to drive 5-10% upside to Street EPS," says Goldman's Mark Delaney, upgrading Broadcom (NASDAQ:BRCM) to Buy.
    • Those product cycles include: 1) Strong expected sales of Broadcom's new 3.2Tbps Tomahawk switching chip, including for Web data center investments. 2) Growing sales of set-top ICs supporting HEVC encoding (to help enable 4K and HD Web video playback). 3) Connectivity (Wi-Fi/Bluetooth) chip growth in "connected devices, IoT, and access points" that can offset phone share loss.
    • Delaney also thinks "there could be additional EPS upside from capital allocation," but expects it to be moderate, given much of Broadcom's cash is offshore.
    • Shares are close to a 52-week high of $42.38. Delaney has also downgraded Broadcom rival Marvell to Sell this morning, while upgrading SanDisk to Buy.
    | Nov. 13, 2014, 8:47 AM
  • Nov. 7, 2014, 3:18 PM
    • Skyworks (SWKS -3.7%) has received at least seven target hikes since delivering above-consensus FQ1 guidance yesterday afternoon and upping its dividend. But shares are nonetheless seeing profit-taking following a huge 2014 rally. Peers RF Micro (RFMD -4.4%), TriQuint (TQNT -4.1%), and Avago (AVGO -3%), each of which has also fared well this year, are also selling off.
    • Needham (target hiked to $70) notes FQ4 results benefited from "broad-based demand drivers including content gains at multiple smartphone OEMs, the LTE ramp in China, the 3G upgrade cycle in emerging markets, multi-stream 802.11ac [Wi-Fi] deployments and [high-power amplifier] penetration across multiple vertical end markets." It also observes management "expects revenue will continue to grow at a rate faster than the industry in F1Q15 and FY15 overall."
    • Oppenheimer declares the RF component boom cycle to be in its early innings. Pac Crest thinks Skyworks' Apple sales are offsetting Samsung weakness, and is upbeat about strong non-mobile demand. "Channels remain lean and inventory build suggests good multi-quarter visibility," says BofA/Merrill.
    • Shares currently go for 14x the pre-earnings FY15 (ends Sep. '15) EPS consensus exc. net cash; the consensus should go up post-earnings.
    | Nov. 7, 2014, 3:18 PM | 5 Comments
  • Oct. 31, 2014, 11:31 AM
    • Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
    • Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
    • On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
    • Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
    • Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
    • Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Oct. 31, 2014, 11:31 AM | 17 Comments
  • Oct. 22, 2014, 11:02 AM
    • Broadcom (NASDAQ:BRCM) is above $40 after soundly beating Q3 estimates and providing better-than-feared Q4 guidance. On its CC (transcript), the company noted its Q3 beat was fueled by 16% Q/Q growth for its broadband/wireless connectivity chip reporting segment (67% of revenue).
    • Wireless connectivity sales almost certainly got a lift (given Apple's numbers) from strong iPhone-related orders. The iPhone 6/6 Plus feature a Broadcom combo chip containing an 802.11ac Wi-Fi radio; 802.11ac parts carry higher ASPs than chips sporting 802.11n Wi-Fi radios (such as the one in the iPhone 5S).
    • Broadband connectivity sales benefited from strong HD set-top IC sales (aided by share gains) for emerging markets designs. That appears to be giving a lift to set-top vendor/Broadcom client Arris (NASDAQ:ARRS) ahead of its Oct. 29 Q3 report.
    • The networking/infrastructure chip segment's sales were roughly flat Q/Q at $651M, in-line with expectations. Data center and carrier-related sales both fell - soft telecom capex has taken a toll on many firms - while enterprise and home product sales rose. "Some pickup" is expected in carrier-related sales next year.
    • During the Q&A, CEO Scott McGregor hinted Broadcom could announce new capital return plans during its Dec. 9 analyst day, given it now has over $2.7B in U.S. cash. $277M was spent on buybacks in Q3.
    | Oct. 22, 2014, 11:02 AM
  • Oct. 22, 2014, 9:19 AM
    | Oct. 22, 2014, 9:19 AM | 1 Comment
  • Oct. 21, 2014, 4:32 PM
    • Broadcom (NASDAQ:BRCM) expects Q4 revenue of $2B-$2.15B vs. $2.11B consensus.
    • Q3 product gross margin was 54.3%, in line with guidance of 54.25%-55.75%.
    • Q4 product GM is expected to be at 55% (+/-75 bps), and operating expenses are expected to decline $40M-$60M Q/Q.
    • Shares +4.88 AH.
    • Q3 results, PR
    | Oct. 21, 2014, 4:32 PM
  • Oct. 21, 2014, 4:12 PM
    • Broadcom (NASDAQ:BRCM): Q3 EPS of $0.91 beats by $0.07.
    • Revenue of $2.26B (+5.6% Y/Y) beats by $80M.
    • Shares +1.96% AH.
    | Oct. 21, 2014, 4:12 PM
  • Oct. 20, 2014, 5:35 PM
  • Oct. 20, 2014, 5:21 PM
    • iPhone suppliers are trading higher after Apple beat FQ4 estimates and issued FQ1 guidance that was mostly above consensus. FQ4 iPhone sales of 39.3M were better than expected, and iPad sales of 12.3M worse than expected.
    • Cirrus Logic (NASDAQ:CRUS) +1.4% AH. Avago (NASDAQ:AVGO) +1.2%. Skyworks (NASDAQ:SWKS) +1.2%. RF Micro (NASDAQ:RFMD) +2.4%. NXP (NASDAQ:NXPI) +2%.
    | Oct. 20, 2014, 5:21 PM | 3 Comments
  • Oct. 16, 2014, 2:47 PM
    • Declaring its October pullback to be a buying opportunity, Brean has upgraded Avago (NASDAQ:AVGO) to Buy, and set an $87 target.
    • Shares also rallied on Tuesday following rival Skyworks' guidance hike. TSMC's numbers are likely helping out today.
    | Oct. 16, 2014, 2:47 PM
  • Oct. 14, 2014, 9:33 AM
    • Skyworks (NASDAQ:SWKS) expects FQ4 (Sep. quarter) revenue of $718M and EPS of $1.08, above a consensus of $679.5M and $1.01. Full FQ4 results arrive on Nov. 6.
    • The RF component maker also hiked its FQ3 guidance in June. Strong iPhone 6-related demand may have contributed to the latest hike, given recent reports.
    • Peers are also up strongly amid a higher open for equities: RFMD +5.5%. TQNT +5.3%. AVGO +3%. Like other chip stocks, the group sold off on Friday following Microchip's warning.
    | Oct. 14, 2014, 9:33 AM | 4 Comments
  • Oct. 14, 2014, 9:15 AM
    | Oct. 14, 2014, 9:15 AM | 2 Comments
  • Oct. 10, 2014, 9:59 AM
    • Microchip's (MCHP -12.5%) calendar Q3 warning, which was accompanied by a declaration that it believes "another industry correction has begun and that this correction will be seen more broadly across the industry in the near future," is taking a heavy toll on chip stocks (SOXX -5.5%).
    • Intel (INTC -4.2%) and many other chipmakers have joined the several firms that sold off AH yesterday in going in the same direction as Microchip: MU -5.8%. FSL -8.5%. BRCM -3.6%. SWKS -7.5%. RFMD -6.2%. XLNX -4.9%. MXIM -5%. AMBA -5.5%. IDTI -6.7%. CAVM -7.4%. AVGO -10.2%. SMTC -4.3%. SYNA -4.1%. POWI -6.9%.
    • Chip equipment makers are also getting hit: AMAT -3.5%. KLAC -3.3%. LRCX -2.3%. UTEK -2.5%. KLIC -2%.
    • As Microchip noted in yesterday's warning, the company's very diversified customer base, together with its recognition of distributor revenue on a customer sell-through basis rather than a distributor sell-in basis, often allow it to see industry changes before peers.
    • The microcontroller vendor added its warning was driven by a September decline in sales to Chinese clients, and observed it has typically "returned to sequential revenue growth after two quarters" during past downturns.
    • Chip stocks have had a good run over the last 12 months, aided by healthy mobile demand and the industry's consolidation wave.
    | Oct. 10, 2014, 9:59 AM | 39 Comments
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