Broadcom beats by $0.08, reports revs in-line; guides Q1 revs above consensus; Reaffirms L-T rev target, raising GM and FCF L-T targets (263.72 +2.07)
- Reports Q4 (Oct) earnings of $4.59 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $4.51; revenues rose 17.1% year/year to $4.84 bln vs the $4.84 bln Capital IQ Consensus.
- Gross margin from continuing operations was $3,068 million, or 63.3 percent of net revenue. This compares with gross margin of $2,827 million, or 63.3 percent of net revenue, in the prior quarter.
- Co issues upside guidance for Q1, sees Q1 revs of $5.225-5.375 bln, excluding non-recurring items, vs. $4.83 bln Capital IQ Consensus Estimate.
- Gross Margins expected to be ion the range of 63-65%.
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Long Term Targets
- Long term free cash flow target increased from 35 percent to 40 percent of net revenue. The Company will continue to target long term annual revenue growth of 5 percent. The Company is raising its long term target for non-GAAP gross margin from greater than 60 percent to 65 percent and non-GAAP operating margin from 45 percent to 47.5 percent.
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Interim Dividend
- The Company's Board of Directors has approved a quarterly, interim cash dividend of $1.75 per ordinary share. A corresponding distribution will also be paid by the Partnership, of which the Company is the General Partner, to holders of REUs, in the amount of $1.75 per REU.