Broadcom (AVGO)

#1

Abro hilo para Broadcom, aprovechando que hoy publicará resultados

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La RPD está en torno al 3.5% y lleva 9 añ, pero lo más atractivo es que en los últimos años lo ha incrementado de manera espectacular. Según la lista CCC:

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#2

Los resultados del 2Q 2019, que se publicaron ayer

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#3

¿Qué empresas serían sus competidores? Lo digo por contrastar esos números con sus comparables

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#4

Broadcom Reports Earnings, Drops On Updated Guidance

Yesterday after the markets closed, semiconductor manufacturer Broadcom (AVGO) reported financial results for the second quarter of fiscal 2019. While the company’s quarterly financial performance was solid and earnings actually beat expectations, the stock fell significantly in after-hours trading after it issued disappointing guidance to investors.

First, let’s discuss the company’s actual financial performance. Broadcom generated revenue of $5.5 billion, which represents growth of 10% from the same period a year ago.

Adjusted operating margin came in at 53% while free cash flow of $2.5 billion increased by 20% from the same period a year ago.

On the bottom line, adjusted diluted earnings-per-share totaled $5.21, which increased by 6.8% over the same period a year ago.

Here’s what Broadcom’s President and Chief Executive Officer, Hock Tan, had to say about the company’s performance in the quarter:

"We executed according to plan in the second quarter with tailwinds from networking offsetting the anticipated headwinds from wireless. We currently see a broad-based slowdown in the demand environment, which we believe is driven by continued geopolitical uncertainties, as well as the effects of export restrictions on one of our largest customers. As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year. We remain well-positioned across our various semiconductor and software businesses and are confident this portfolio of franchises will continue to drive sustained long-term revenue growth and increasing free cash flow.”

This ‘conservative stance’ is impacting Broadcom’s projected financial performance. The company significantly reduced its full-year financial guidance with the publication of its second-quarter earnings release.

Broadcom now expects the following for fiscal 2019:

  • Revenue of about $22.5 billion
  • Adjusted operating margin of 52.5%
  • $1.3 billion of net interest expense
  • 11% income tax provision

The sales forecast is the most surprising, with the $22.5 billion figure coming in a full $2 billion below the company’s prior guidance figure.

Looking ahead, we believe that Broadcom’s long-term growth outlook is bright despite short-term headwinds. With strong growth potential, an above-average dividend yield, and a stock price that trades below our fair value estimate, Broadcom earns a buy recommendation from Sure Dividend today

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#5

Key competitors include Intel, NXP, Marvell, and Mediatek. In wireless communications, competitors include Qualcomm, Skyworks Solutions , and Qorvo. In enterprise storage, Texas Instruments, Cisco, Marvell, and Microsemi all compete against Broadcom

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#6
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