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Stock Market & Financial Investment News

News Breaks
July 22, 2014
13:42 EDTBRCMEarnings Preview: Analysts divided on Broadcom ahead of Q2 report
Broadcom (BRCM) is expected to report second quarter earnings after the close on Tuesday, July 22, with a conference call scheduled for 4:45 pm ET. Broadcom is a semiconductor maker that operates in three segments: Broadband Communications, Mobile & Wireless, and Infrastructure & Networking. EXPECTATIONS: Analysts are looking for earnings per share of 61c on revenue of $2.05B. The consensus range is 55c-64c for EPS on revenue of $2.03B-$2.08B, according to First Call. Along with its first quarter earnings, Broadcom said it expected Q2 revenue of $2B-$2.1B. LAST QUARTER: On April 24, Broadcom reported Q1 EPS of 51c on revenue of $1,98B, both of which beat the consensus expectations at that time. NEWS: On June 2, Broadcom announced it is exploring strategic alternatives for its cellular baseband business, including a potential sale or wind-down. The company said that the "successful" sale or wind-down of the cellular baseband business was currently expected to result in a roughly $700M reduction in annualized GAAP research and development and selling, general and administrative expenses, of which approximately $100M related to estimated reductions in stock-based compensation. As such, non-GAAP research and development and selling, general and administrative expenses were expected to be reduced by roughly $600M. Broadcom said that it expected to organically reinvest roughly $50M of these savings on an annualized basis into projects in the Broadband, Infrastructure and Connectivity businesses. This incremental spending was expected to strengthen and accelerate the company's plans in the area of small cells, embedded processing and low-power connectivity. RESEARCH: On June 2, analysts began reacting to the news that Broadcom was considering selling or winding down its cellular baseband business. The semiconductor maker was downgraded to Underperform from Market Perform at Wells Fargo. Wells believed shedding the unit will pull down Broadcom's revenue growth in 2014 and 2015 below semiconductor market growth. The firm maintained a $27-$32 price target range for shares. On June 3, Broadcom was downgraded at Stifel to hold from Buy. The firm thought the sale or wind-down of the company's cellular baseband business could cause the market share of its connectivity business to decline. A $35 price target was placed on the shares. In contrast, Wedbush and CLSA upgraded Broadcom on June 3. Wedbush upgraded the company to Outperform from Neutral and said that the company's move to sell or wind down its baseband business removed its biggest concern about the stock. The firm added that the move unlocked considerable value. Wedbush increased its price target on the shares to $43 from $30. On June 4, Broadcom was down graded to Hold from Buy at Standpoint Research and upgraded to Buy from Hold at Drexel Hamilton. Drexel Hamilton upgraded the company based on increased earning power from core communications, infrastructure and broadband acceleration. The firm raised its price target to $45. On June 5, Barclays and BNP Paribas upgraded Broadcom, citing the company's choice to exit from the loss-making baseband business. On June 17, Benchmark downgraded the semiconductor maker to Hold from Buy and maintained its price target of $40 on the shares. Oppenheimer then upgraded Broadcom to Outperform from Perform on July 9, citing an improved margin and cash flow profile following the exit of the baseband division. Opco said that it foresees multiple catalysts ahead and expects improved capital allocation. PRICE ACTION: During the last three months, Broadcom shares are up almost 29%. In afternoon trading, shares of the semiconductor maker rose fractionally to $38.73.
News For BRCM From The Last 14 Days
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October 30, 2014
09:23 EDTBRCMBroadcom management to meet with Deutsche Bank
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October 29, 2014
07:06 EDTBRCMBroadcom management to meet with Deutsche Bank
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October 24, 2014
16:54 EDTBRCMMarket ends week higher as Apple leads list of earnings winners
Stocks ended the week higher as stronger than expected economic data and upbeat results from a number of companies lifted shares. MACRO NEWS: In the U.S., existing home sales for September and leading economic indicators for the month beat expectations, while weekly jobless claims were roughly in-line with expectations. Markit's “flash” manufacturing Purchasing Managers' Index for October came in at 56.2, versus the consensus forecast for a 57.0 reading... China reported that its GDP rose 7.3% in Q3, above the 7.2% growth expected by economists. HSBC's flash PMI inched up to 50.4 from a final reading of 50.2 in September, beating the consensus forecast for a 50.3 reading. The Asian country said that its industrial production jumped 8% versus the year earlier, easily beating the anticipated 7.5% increase... A euro zone purchasing managers' index increased to 52.2 in October from 52 in September. Most analysts had expected the index to decline modestly. COMPANY NEWS: Apple (AAPL), Microsoft (MSFT), Harley-Davidson (HOG), Yahoo (YHOO), Caterpillar (CAT), diversified manufacturer 3M (MMM) and chip maker Broadcom (BRCM) were among the companies that reported higher than expected profits. Conversely, the bottom lines of IBM (IBM), McDonald's (MCD), Verizon (VZ), AT&T (T), and Angie's List (ANGI) missed expectations... Shares of Amazon (AMZN) fell after the company reported weaker than expected results and provided lower than expected revenue guidance. At least two analysts downgraded the stock following its quarterly report, while a number of others cut their price targets on the shares... Boeing (BA) reported stronger than expected results and raised its full year core EPS guidance, but its stock fell as the airplane maker reduced its full year operating cash flow guidance... Pandora's (P) shares tumbled after the company's Q3 results beat expectations, but its total listener hours declined in Q3 versus Q2... Shares of drug maker Biogen Idec (BIIB) fell after the Q3 sales of its flagship multiple sclerosis treatment, Tecfidera, came in below expectations. Additionally, Biogen reported that one of the patients taking the drug had died after contracting a disease previously linked to MS treatments... BlackBerry (BBRY) rallied following renewed rumors that Chinese computer maker Lenovo (LNVGY) is looking to buy the smartphone maker... At home soda machine maker SodaStream (SODA) rallied after the company said that it would test making some of PepsiCo's (PEP) brands available on its machines. INDEXES: For the week, the Dow gained 2.58% to close at 16,805.41, the S&P 500 rose 4.12% to close at 1,964.58, and the Nasdaq advanced about 5.28% to close at 4,483.71.
October 22, 2014
16:33 EDTBRCMOn The Fly: Closing Wrap
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10:03 EDTBRCMThe Linley Group to hold a conference
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09:21 EDTBRCMOn The Fly: Pre-market Movers
UP AFTER EARNINGS: Dow Chemical (DOW), up 3.7%... iRobot (IRBT), up 12%... Six Flags (SIX), up 13%... GlaxoSmithKline (GSK), up 2%... Broadcom (BRCM), up 7%... Boston Scientific (BSX), up 4.3%... Abbott (ABT), up 1.8%... Yahoo! (YHOO), up 6%. ALSO HIGHER: Blue Earth (BBLU), up 26.4% after CEO says statements in Seeking Alpha blog are "false and misleading."... GW Pharmaceuticals (GWPH), up 5.4% after Epidiolex receives orphan designation from EMA. DOWN AFTER EARNINGS: 3D Systems (DDD), down 15%... Biogen (BIIB), down 7%... Lumber Liquidators (LL), down 13.4%... Norfolk Southern (NSC), down 3%... Angie's List (ANGI), down 8.8%. ALSO LOWER: Nanosphere (NSPH), down 33% after filing secondary, reporting preliminary Q3 revenue... Himax Technologies (HIMX), down 16% after announcing that Google (GOOG) will not exercise an additional investment option in the company... Cree (CREE), down 10.5%, downgraded at DA Davidson and Canaccord following the company's Q1 earnings results... Ocwen Financial (OCN), down 7% after downgraded to Hold at Evercore, downgraded to Neutral at BofA Merrill Lynch... VMware (VMW), down 7.8%, downgraded at Nomura and Raymond James following the company's Q3 results.
October 21, 2014
18:36 EDTBRCMOn The Fly: After Hours Movers
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17:37 EDTBRCMBroadcom says in better strategic position for share buybacks vs. last quarter
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16:58 EDTBRCMBroadcom says broadband/connectivity business to be down in Q4
Says continues to see solid growth in set top boxes. Expects to incur $60M in restructuring charges over next 12 months. Comments from company's Q3 earnings conference call.
16:52 EDTBRCMBroadcom reports Q3 adjusted product gross margin 54.3%
16:39 EDTBRCMBroadcom sees Q4 GAAP revenue about $2B-$2.15B, consensus $2.11B
Sees Q4 non-GAAP gross margin 55%, plus or minus 75bps.
16:27 EDTBRCMBroadcom up over 4% following Q3 results, Q4 guidance
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16:09 EDTBRCMBroadcom sees Q4 GAAP product gross margin 53% plus or minus 75bps
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16:08 EDTBRCMBroadcom CEO says delivered record quarterly revenue in Q3
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16:05 EDTBRCMBroadcom reports Q3 adjusted EPS 91c, consensus 84c
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15:30 EDTBRCMNotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include Yahoo! (YHOO), consensus 30c; ACE (ACE), consensus $2.34; Discover Financial (DFS), consensus $1.34; Pinnacle Financial (PNFP), consensus 51c; Broadcom (BRCM), consensus 84c; Intuitive Surgical (ISRG), consensus $3.80; FMC Technologies (FTI), consensus 74c; Robert Half International (RHI), consensus 58c; E-Trade (ETFC), consensus 22c; Nabors Industries (NBR), consensus 36c; Waste Connections (WCN), consensus 54c; Cubist Pharmaceuticals (CBST), consensus 4c; Sonic (SONC), consensus 34c; American Campus Communities (ACC), consensus 43c; Cree (CREE), consensus 36c; Fulton Financial (FULT), consensus 20c; Costamare (CMRE), consensus 41c; Hawaiian Holdings (HA), consensus 78c; Ethan Allen (ETH), consensus 36c; Sabra Health (SBRA), consensus 55c; Rush Enterprises (RUSHA), consensus 51c.
14:19 EDTBRCMBroadcom volatility elevated into Q3 and outlook
Broadcom October weekly call option implied volatility is at 65, November is at 28, December is at 27, January is at 25; compared to its 26-week average of 27 according to Track Data, suggesting large near term price movement into the expected release of Q3 results today after the market close.
14:04 EDTBRCMEarnings Preview: Analysts divided on Broadcom ahead of Q3 report
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07:05 EDTBRCMMicrosemi introduced its new RPF technology
Microsemi (MSCC) introduced at the Broadband World Forum, or BBWF, 2014 its new reverse power feed, or RPF, technology, a critical technology for FTTdp and G.fast deployments. G.fast, the new xDSL standard for 1gbps over copper, has a maximum expected range of 250 meters. Microsemi's RPF for DSL applications demonstrated at BBWF, are designed to be used in conjunction with the VDSL2 and G.fast chipsets from Broadcom (BRCM).

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