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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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December 17, 2014
08:15 EDTBRCMBroadcom launches first 40/50/100GbE PAM-4 physical layer device
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08:04 EDTBRCMBroadcom launches video platform for Mexican transition to digital TV
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December 15, 2014
10:00 EDTBRCMOn The Fly: Analyst Upgrade Summary
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07:45 EDTBRCMBroadcom upgraded to Buy from Hold at Evercore ISI
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December 10, 2014
08:40 EDTBRCMBroadcom price target raised to $53 from $46 at Brean Capital
Brean Capital raised its price target on Broadcom to $53 from $46 following the company's analyst day, citing its updated guidance range, potential for return of capital to shareholders, and its leading position in its business segments. Brean Capital reiterated its Buy rating on Broadcom shares.
08:04 EDTBRCMBroadcom price target raised to $52 from $48 at Oppenheimer
Oppenheimer raised its price target on Broadcom as the firm believes that the tone at the company's Analyst Day was positive. The firm thinks the company's networking unit looks poised for further share gains at Marvell's (MRVL) expense. Oppenheimer continues to recommend buying the stock.
07:21 EDTBRCMBroadcom price target raised to $52 from $45 at Susquehanna
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06:54 EDTBRCMBroadcom shares continue to have upside, says Deutsche Bank
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December 9, 2014
18:21 EDTBRCMOn The Fly: After Hours Movers
UP AFTER EARNINGS: Korn/Ferry (KFY), up 3.1%... Analogic (ALOG), up 2.7%. DOWN AFTER EARNINGS: Freshpet (FRPT), down 8.5% after reporting quarterly results... Krispy Kreme (KKD), down 4.9%... Broadcom (BRCM), reverses to down just below 1%. ALSO LOWER: Agios Pharmaceuticals (AGIO), down 1.9% after filing to sell $175M of common stock... Yum! Brands (YUM), down 4.6% after providing fiscal 2015 operating guidance.
16:10 EDTBRCMBroadcom enhances corporate governance measures
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16:07 EDTBRCMBroadcom increases dividend to 14c, authorizes $1B stock repurchase plan
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16:05 EDTBRCMBroadcom increases dividend to 14c, authorizes $1B stock repurchase plan
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16:04 EDTBRCMBroadcom raises Q4 revenue view to $2.075B-$2.15B, consensus $2.09B
Broadcom maintained the guided range for Q4 product dross margin on both a GAAP and non-GAAP basis. Now sees Q4 R&D and SG&A expenses closer to down about $50M and down about $40M on a GAAP and non-GAAP basis, respectively.
December 8, 2014
15:18 EDTBRCMBroadcom December volatility elevated into analyst day
Broadcom December weekly call option implied volatility is at 53, December is at 34, January is at 27; compared to its 26-week average of 26 according to Track Data, suggesting large near term price movement into a company sponsored analyst day on December 10.

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