Shares of Avago Technologies Ltd (NASDAQ:AVGO) are trading up $5.79 or 4.38 percent in after hours following an earnings beat. The company reported an EPS of $2.51, beating analyst estimates by approximately 13 cents a share. Revenue for the company’s fourth quarter came it at $1.78 billion, $40 million shy of consensus estimates.
Avago Technologies Ltd (NASDAQ:AVGO) also reported a gross margin for the quarter of $997 million, or around 54% of net revenue. Operating expenses came in at $483 million, down considerably from last quarter’s $585 million.
“We finished fiscal 2015 on a very strong note, delivering record levels of revenue and profitability in our recently completed fourth quarter. The LSI acquisition and the synergies we have been able to realize through its integration, as well as strong year on year growth in wireless revenues were significant contributors to our 2015 results,” said Hock Tan, President and CEO of Avago Technologies Limited.The stock decreased 0.51% or $0.68 during the last trading session, hitting $132.21. About 4.05M shares traded hands or 27.36% up from the average. AVGO has risen 13.55% since April 29, 2015 and is uptrending. It has outperformed the S&P500 by 13.75%.
From a total of 14 analysts covering Avago Technologies Limited (NASDAQ:AVGO) stock, 13 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 93% of the ratings are positive. The highest target price is $185 while the lowest target price is $95.0. The mean of all analyst targets is $153.73 which is 16.28% above today’s ($132.21) stock price. Avago Technologies Limited was the topic of 22 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on December 1 with a “Positive” rating. BMO Capital Markets maintained shares with a”Outperform” rating and a $185 target share price in their report from an August 28. Drexel Hamilton initiated AVGO stock in a recent report from November 10 with a “Buy” rating. CLSA upgraded the rating on August 25. CLSA has a “Outperform” rating and a $150 price target on shares. Finally, JMP Securities upgraded the stock to a “Market Outperform” rating in a report they issued on a September 10.
The institutional sentiment increased to 1.2 in Q2 2015. It’s up 0.10, from 1.1 in 2015Q1. The ratio improved, as 45 funds sold all their Avago Technologies Ltd shares they owned while 217 reduced their positions. 102 funds bought stakes while 212 increased their total positions. Institutions now own 216.02 million shares which is 17.56% more than the previous share count of 183.76 million in 2015Q1.
Silver Lake Group L.L.C. holds 24.33% of its total portfolio in Avago Technologies Ltd, equating to 13.76 million shares. Adi Capital Management Llc owns 196,030 shares representing 14.12% of their total US portfolio. Moreover, Brenner West Capital Advisors Llc has 12.35% of their total portfolio invested in the company, equating to 802,100 shares. The California-based Crescent Park Management L.P. has a total of 9.49% of their portfolio invested in the stock. Tekne Capital Management Llc, a New York-based fund reported 376,838 shares owned.
Since March 12, 2015, the stock had 0 insider purchases, and 19 selling transactions for a total of $82.02 million in net activity. Maslowski Anthony E. sold 5,000 shares worth $608,650. Tan Hock E sold 105,729 shares worth $12.75 million. Lien Justine sold 3,285 shares worth $413,779. Mccall Patricia H sold 5,000 shares worth $650,300. The insider Kawwas Charlie B sold 10,000 shares worth $1.31 million.
Avago Technologies Limited is a designer, developer and global supplier of a range of analog semiconductor devices. The company has a market cap of $36.68 billion. The Firm focuses on III-V based products and complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices. It has 35.15 P/E ratio. The Firm operates through four divisions: wireless communications, enterprise storage, wired infrastructure and industrial & other.