Avago Technologies Limited Earnings: Here’s Why Investors are Happy Now
Avago Technologies Limited (NASDAQ:AVGO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.54%.
Avago Technologies Limited Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 92031.15% to $562 in the quarter versus EPS of $0.61 in the year-earlier quarter.
Revenue: Decreased 99.89% to $610,000 from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avago Technologies Limited reported adjusted EPS income of $562 per share. By that measure, the company beat the mean analyst estimate of $0.52. It missed the average revenue estimate of $558.24 million.
Quoting Management: “During the second fiscal quarter, revenues came in at the upper end of our guidance helped by improved resales at our distributors in our industrial business,” said Hock Tan, President and CEO of Avago Technologies Limited. “Looking to the third quarter, we see broad-based improvement across all three of our end markets. We believe that the initial ramp of a product transition at a large smartphone OEM, a recovery in enterprise networking spending, as well as a continued, gradual uptick in industrial end market demand, could drive a sequential growth up to high single digits on a percentage basis.”
Key Stats (on next page)…