Hot Tech stock to watch: Broadcom Inc (NASDAQ: AVGO)

Free $100 Forex No-Deposit Bonus

Broadcom Inc (NASDAQ: AVGO) stock rose over 4.7% in the pre market session on December 7th, 2018 (Source: Google finance) after the company reported quarterly revenue and profit above the analysts’ estimates, on the back of strong demand for its enterprise storage and networking products from data centers. The company’s results beat was mainly driven by a better product mix and lower operating expenses. The company also project better-than-expected full-year revenue and said it would not be giving quarterly guidance going forward. Net income attributable to ordinary shares rose to $1.12 billion in the fourth quarter from $532 million, a year earlier. AVGO had acquired software maker CA Technologies for $19 billion earlier this year, aiming to diversify its revenue stream in the wake of a cooling semiconductor cycle. Free cash flow from operations was $2,529 million in the quarter, compared to $1,726 million in the same quarter last year. The Company’s cash and cash equivalents at the end of the fourth fiscal quarter were $4,292 million, compared to $4,136 million at the end of the prior quarter. During the fourth fiscal quarter, the Company generated $2,635 million in cash from operations and spent $1,533 million repurchasing an aggregate of 6.4 million shares and $106 million in capital expenditures. On September 28, 2018, the Company paid a cash dividend of $1.75 per share of common stock, totaling $723 million

AVGO in the fourth quarter of FY 18 has reported the adjusted earnings per share of $5.85, beating the analysts’ estimates for the adjusted earnings per share of $5.58. The company had reported the adjusted revenue growth of 12.4 percent to $5.44 billion in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $5.39 billion. Revenue from Broadcom’s wireless communications business, which makes RF filters and Wi-Fi chips for smartphones, has contributed 31 percent to the sales, which is above AVGO’s earlier expectations, but fell 5 percent to $1.70 billion from a year earlier. AVGO’s wireless business performed better than expected due to demand for older smartphones from a North American customer.

For the full year, Broadcom expects revenue of $24.50 billion, above analysts’ estimates of $22.40 billion, according to IBES data from Refinitiv. Capital expenditures for the fiscal year are expected to be approximately $550 million. For the fiscal year, depreciation is expected to be $600 million and amortization is expected to be approximately $4,700 million.

Copyright © 2019. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.