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 Aroon Indicator triggered a bullish signal on October 18, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 386 similar instances where the Aroon Indicator showed a similar pattern. In of the 386 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 44 cases where AVGO's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on AVGO as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
AVGO moved above its 50-day moving average on November 05, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for AVGO moved out of overbought territory on October 11, 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 65 similar instances where the indicator moved out of overbought territory. In of the 65 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for AVGO turned negative on October 16, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
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AVGO broke above its upper Bollinger Band on October 08, 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 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 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 69, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 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 (12.771) is normal, around the industry mean (8.184). P/E Ratio (145.032) is within average values for comparable stocks, (58.301). Projected Growth (PEG Ratio) (1.259) is also within normal values, averaging (3.072). Dividend Yield (0.012) settles around the average of (0.021) among similar stocks. P/S Ratio (17.794) is also within normal values, averaging (42.454).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of digital and analog semiconductor products
Industry Semiconductors