Thursday, December 16, 2010

Broadcom (NASDAQ:BRCM) Increases Revenue Guidance

At its annual analyst day, Broadcom (NASDAQ:BRCM) increased its revenue guidance for the fourth quarter, saying it's tracking close to $1.98.

FBR said, "On Tuesday, Broadcom hosted its annual analyst day. The firm raised 4Q revenue guidance and discussed in detail its business strategies, IP portfolio, and key growth opportunities. For 4Q, Broadcom now sees revenues tracking at the high end of guidance near $1.9B (+5% QOQ, +43% YOY), while gross margins, R&D spending, and share-count metrics should be slightly worse than prior guidance, largely due to the several acquisitions that Broadcom made this quarter. We see this guidance update as a near-term net positive, with most 4Q revenue upside driven by stronger mobile and wireless sales (likely combo chips into smartphones and tablets)."

FBR Capital maintains an "Outperform" rating on Broadcom, with a price target on them of $49, increasing it from $45.

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