“Broadcom reported better than expected quarterly results on Dec. 6 after the close. But more important the company saw better than expected wireless business growth,” Mott Capital Management writes for Seeking Alpha. “It should be a positive read through to Apple and suggests that perhaps things at Apple aren’t as dire as some have feared.”

“Broadcom reported fourth quarter revenue growth of 8% sequentially and 12% year over year. But more importantly, the company saw sequential wireless growth of 32% in the fourth quarter and a year-over-year decline of 5%. Broadcom had noted in its third quarter conference call it was looking for wireless growth of 25% sequentially driven by a ramp-up of its North American OEM. It puts the current wireless results ahead of expectations,” Mott Capital Management writes. “The company noted on its fourth quarter call that the better than expected wireless revenue was driven by upside volumes and legacy phone generation and also its North America OEM.”

“Broadcom is a significant supplier to Apple,” Mott Capital Management writes. “Based on the latest results out of Broadcom one can confirm that perhaps iPhone sales may be weak, but far from a disastrous… consensus revenue estimates have fallen just 1.5% to $91.54 billion which is around Apple’s guidance. Additionally, earnings estimates have dropped 1% to $4.68 per share. Again, despite all the fears of iPhone weakness revenue and earnings estimates have remained relatively unchanged. All of this would suggest that Apple’s stock is likely oversold on fears that may be greater than reality.”

Read more in the full article here.

MacDailyNews Take: “Apple’s stock is likely oversold on fears that may be greater than reality.” Gee, ya think?

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