Broadcom Corp. Earnings Estimates Cut at Jefferies Group (BRCM)
Analysts at Jefferies Group dropped their earnings per share (EPS) estimates on shares of Broadcom Corp. (NASDAQ:BRCM) in a research report issued to clients and investors on Thursday, AnalystRatingsNetwork reports. The firm currently has a “buy” rating and a $34.00 target price on the company’s shares. They previously had a $38.00 target price on the stock. Jefferies Group’s price objective would indicate a potential upside of 31.17% from the stock’s previous close.
The analysts wrote, “The LTE asset acquisition from Renesas provides carrier-validated LTE modems and accelerates BRCM’s entrance to the space. We view it as a positive as BRCM becomes a second source for LTE modems faster than expected. The acquisition is expected to close in early Q4 2013. We are lowering EPS by $0.02 for 2013 and $0.07 for 2014 as higher gross margins due to better mix are offset by higher OpEx associated with the acquisition. We are buyers of the stock.”
Shares of Broadcom Corp. (NASDAQ:BRCM) traded up 3.28% on Thursday, hitting $26.77. The stock had a trading volume of 13,305,820 shares. Broadcom Corp. has a 1-year low of $23.25 and a 1-year high of $37.85. The stock’s 50-day moving average is $27.20 and its 200-day moving average is $32.71. The company has a market cap of $15.500 billion and a P/E ratio of 35.90. Broadcom Corp. also was the target of some unusual options trading activity on Wednesday. Stock traders purchased 18,760 call options on the stock. This represents an increase of approximately 114% compared to the average volume of 8,757 call options.
Broadcom Corp. (NASDAQ:BRCM) last announced its earnings results on Tuesday, July 23rd. The company reported $0.70 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.69 by $0.01. The company had revenue of $2.09 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same quarter last year, the company posted $0.72 earnings per share. Broadcom Corp.’s revenue was up 6.0% compared to the same quarter last year. Analysts expect that Broadcom Corp. will post $2.74 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on BRCM. Analysts at Cowen and Company cut their price target on shares of Broadcom Corp. (NASDAQ:BRCM) from $37.00 to $33.00 in a research note to investors on Wednesday. They now have an “outperform” rating on the stock. Separately, analysts at Credit Agricole upgraded shares of Broadcom Corp. (NASDAQ:BRCM) from an “underperform” rating to an “outperform” rating in a research note to investors on Wednesday. Finally, analysts at Piper Jaffray Cos. initiated coverage on shares of Broadcom Corp. (NASDAQ:BRCM) in a research note to investors on Thursday, August 22nd. They set an “overweight” rating and a $50.00 price target on the stock.
Two investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and twenty-seven have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $35.83.
The company also recently declared a quarterly dividend, which is scheduled for Monday, September 16th. Stockholders of record on Friday, August 30th will be given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a yield of 1.70%. The ex-dividend date of this dividend is Wednesday, August 28th.
Broadcom Corporation (NASDAQ:BRCM) is a global semiconductor solution for wired and wireless communications.
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