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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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November 26, 2014
12:34 EDTBRCMApple Pay competitor to reportedly launch in China, WantChinaTimes says
China UnionPay, the largest issuer of credit and debit cards in China, is promoting a mobile payment system for smartphones that use Google's (GOOG) Android operating system, China Business News reported, according to WantChinaTimes. The service will use NFC technology like Apple;'s (AAPL) Apple Pay, and launch in the third quarter of 2015, WantChina Times quoted the China Business News article as saying. NXP Semiconductors (NXPI) and Broadcom (BRCM) manufacture NFC chips. Reference Link
November 18, 2014
05:54 EDTBRCMStocks with implied volatility movement; URBN BRCM
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November 13, 2014
12:37 EDTBRCMBroadcom hits 52-week high after Goldman ups to Buy
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10:01 EDTBRCMOn The Fly: Analyst Upgrade Summary
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05:34 EDTBRCMBroadcom upgraded to Buy from Neutral at Goldman
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