Broadcom (AVGO, $268.20) beats fiscal Q1 earnings; plans $12 billion shareholder payouts
After Thursday’s trading close, Broadcom announced better-than-expected fiscal first quarter earnings and its plan to give back $12 billion to shareholders.
For the three months ending February 3, the semiconductor & infrastructure software company raked in earnings of $5.55 per share, higher than the Street estimates of $5.22 per share. The earnings-per-share were also greater than the year-ago quarter’s figure, by a solid +8.4%.
The company’s net revenues for the quarter jumped +8.7% from the year-ago period to $5.789 billion, falling a bit short of the consensus expectation of $5.82 billion.
Having experienced a free cash flow of more than $2 billion – a +39% year-over-year increase - Broadcom wants to pay out around $12 billion to stockholders through a combination of cash dividends and share buy backs and eliminations in fiscal 2019. The firm said it plans to maintain its “investment grade credit rating."
CEO Hock Tan indicated that strong performance in Broadcom’s networking segment boosted its semiconductor solutions business, in addition to solid results generated by the firm’s infrastructure software business for the first quarter of fiscal 2019.
Broadcom shares climbed almost +5% in after-hours trading after the release of the earnings report.
AVGO's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for AVGO turned positive on December 04, 2024. Looking at past instances where AVGO's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
AVGO moved above its 50-day moving average on December 11, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AVGO crossed bullishly above the 50-day moving average on December 13, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AVGO moved out of overbought territory on December 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 64 similar instances where the indicator moved out of overbought territory. In of the 64 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where AVGO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 31, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AVGO as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AVGO broke above its upper Bollinger Band on December 13, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AVGO entered a downward trend on December 09, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AVGO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (16.051) is normal, around the industry mean (14.265). AVGO has a moderately high P/E Ratio (179.721) as compared to the industry average of (57.075). Projected Growth (PEG Ratio) (0.657) is also within normal values, averaging (3.158). Dividend Yield (0.009) settles around the average of (0.021) among similar stocks. P/S Ratio (21.459) is also within normal values, averaging (58.621).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of digital and analog semiconductor products
Industry Semiconductors