Avago Technologies (AVGO) Tops Estimates

Avago Technologies Limited (AVGO) reported first quarter 2015 non-GAAP EPS of $2.09 after the close Wednesday, compared to the consensus estimate of $1.94. Revenues increased 133.7% from last year to $1.66 billion. Analysts expected revenues of $1.64 billion. The stock is now up $5.90 to $118.58 on more than 3.4 million shares.

“We had a strong start to our fiscal year with better than expected 3 percent sequential revenue growth in the first quarter, driven by our wireless revenues, which grew by 90 percent from the same quarter last year.” said in a statement Hock Tan, President and CEO of Avago Technologies. “And we continued to deliver very strong financial results with greater than 40 percent operating margins and $2.09 in EPS.”

For Q2’15, AVGO provided revenue projection of $1.61-$1.67 billion, compared to the consensus revenue estimate of $1.55 billion.

On valuation measures, Avago Technologies Ltd. shares, which currently have an average 3-month trading volume of 2.02 million shares, trade at a trailing-12 P/E of 114.05, a forward P/E of 14.09 and a P/E to growth ratio of 0.48. The median Wall Street price target on the name is $115.00 with a high target of $135.00. Currently ticker boasts 17 ‘Buy’ endorsements, compared to 4 ’Holds’ and no ‘Sell’.

Profitability-wise, AVGO has a t-12 profit and operating margin of 6.16% and 19.96%, respectively. The $28.77 billion market cap company reported $2.56 billion in cash vs. $5.51 billion in debt in its most recent quarter.

AVGO currently prints a one year return of about 93% and a year-to-date return of around 12.50%.

The chart below shows where the equity has traded over the last 52 weeks.

Avago Technologies Ltd. is a designer, developer and global supplier of a broad range of analog semiconductor devices. The company was founded in 2005 and is headquartered in Singapore.

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