Broadcom: Healthy Results but Mum on Qualcomm
We estimate that Broadcom can raise its bid price as high as $85 per share and still find the acquisition to be quite accretive.
Broadcom's revenue in the October quarter was $4.84 billion, up 9% sequentially and 17% year over year and ahead of the midpoint of the firm's previous guidance of $4.80 billion as discussed in early September. Wireless revenue was the bright spot, up 33% year over year and up 40% sequentially, again thanks to Broadcom's content gains within Apple's latest iPhones. Enterprise storage revenue appears to be cooling off, particularly for chips used in storage hard-disk drives, with sales down 12% sequentially but still up 15% year over year. Meanwhile, the firm's largest segment, Wired Infrastructure, saw sales rise 3% year over year but were down 3% sequentially.
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