Broadcom (NASDAQ:AVGO) Posts Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Broadcom (NASDAQ:AVGO) announced its earnings results on Thursday. The semiconductor manufacturer reported $3.99 EPS for the quarter, missing the consensus estimate of $4.10 by ($0.11), Morningstar.com reports. The business had revenue of $5.52 billion for the quarter, compared to the consensus estimate of $5.52 billion. Broadcom had a return on equity of 33.21% and a net margin of 13.44%. Broadcom’s revenue for the quarter was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $4.98 EPS. Broadcom updated its FY 2019 guidance to EPS.

NASDAQ:AVGO opened at $290.32 on Friday. Broadcom has a 1-year low of $208.23 and a 1-year high of $323.20. The business’s 50-day moving average price is $282.92 and its two-hundred day moving average price is $286.84. The company has a current ratio of 1.26, a quick ratio of 1.13 and a debt-to-equity ratio of 1.53. The firm has a market capitalization of $119.65 billion, a price-to-earnings ratio of 16.63, a PEG ratio of 1.47 and a beta of 0.88.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Monday, September 23rd will be paid a $2.65 dividend. This represents a $10.60 annualized dividend and a yield of 3.65%. The ex-dividend date is Friday, September 20th. Broadcom’s payout ratio is 56.29%.



In other Broadcom news, insider Hock E. Tan sold 20,000 shares of the stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $292.16, for a total value of $5,843,200.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Bryan Ingram sold 11,922 shares of the stock in a transaction dated Wednesday, June 26th. The shares were sold at an average price of $278.58, for a total value of $3,321,230.76. The disclosure for this sale can be found here. Insiders sold 85,388 shares of company stock worth $23,607,682 in the last three months. Insiders own 3.30% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Broadcom by 1.8% during the second quarter. Vanguard Group Inc. now owns 31,797,832 shares of the semiconductor manufacturer’s stock worth $9,153,324,000 after purchasing an additional 559,961 shares during the period. BlackRock Inc. raised its position in shares of Broadcom by 0.4% during the second quarter. BlackRock Inc. now owns 25,780,514 shares of the semiconductor manufacturer’s stock worth $7,421,177,000 after purchasing an additional 105,186 shares during the period. Northern Trust Corp raised its position in shares of Broadcom by 1.1% during the second quarter. Northern Trust Corp now owns 4,971,618 shares of the semiconductor manufacturer’s stock worth $1,431,130,000 after purchasing an additional 52,034 shares during the period. Bank of New York Mellon Corp raised its position in shares of Broadcom by 2.2% during the second quarter. Bank of New York Mellon Corp now owns 4,120,427 shares of the semiconductor manufacturer’s stock worth $1,186,106,000 after purchasing an additional 88,958 shares during the period. Finally, Jennison Associates LLC raised its position in shares of Broadcom by 10.9% during the first quarter. Jennison Associates LLC now owns 3,650,806 shares of the semiconductor manufacturer’s stock worth $1,097,834,000 after purchasing an additional 359,736 shares during the period. 84.63% of the stock is currently owned by institutional investors.

Several analysts have recently commented on AVGO shares. Deutsche Bank decreased their target price on Broadcom from $330.00 to $315.00 and set a “buy” rating on the stock in a report on Friday, June 14th. Cascend Securities increased their target price on Broadcom from $300.00 to $330.00 and gave the stock a “buy” rating in a report on Tuesday, September 10th. Citigroup decreased their target price on Broadcom from $320.00 to $300.00 and set a “buy” rating on the stock in a report on Friday, June 14th. SunTrust Banks increased their target price on Broadcom from $307.00 to $322.00 and gave the stock a “buy” rating in a report on Friday. Finally, Barclays decreased their target price on Broadcom from $360.00 to $315.00 and set an “overweight” rating on the stock in a report on Friday, June 14th. Ten investment analysts have rated the stock with a hold rating and twenty-eight have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $309.47.

Broadcom Company Profile

Broadcom Inc designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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Earnings History for Broadcom (NASDAQ:AVGO)

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