“Avago Technologies stock jumped late Wednesday after the Apple supplier reported fiscal Q4 earnings that topped Wall Street expectations, with full-year fiscal 2015 EPS jumping 83% from fiscal 2014,” Allison Gatlin reports for Investor’s Business Daily.
“Wireless sales growth helped push fiscal 2015 revenue to a record, Avago CEO Hock Tan said during the company’s earnings conference call with analysts,” Gatlin reports. “Shares were up 7.5% in after-hours trading, after the supplier of chips to Apple and other mobile device makers released its earnings. Shares of fellow Apple chip suppliers NXP Semiconductors and Skyworks Solutions were both up more than 1% after hours.”
“For its Q4, which ended Oct. 31, Avago reported $1.84 billion in sales and $2.51 earnings per share ex items, up 16% and 26%, respectively, vs. the year-earlier quarter,” Gatlin reports. “Many analysts predict a decline in Q1 unit sales for the iPhone, and other Apple suppliers have noted as much during their September-quarter conference calls.
Tan, though, predicts a 20% increase in Avago RF content in the next smartphone from the unnamed North American customer — i.e., Apple. Analysts questioned that growth prediction. ‘Not many people can do it,'” Tan said. But ‘content keeps going in that range, and we’re always able to capture that. That is a broad trend in the smartphone market, and we do not see that changing in the next three years.'”
Read more in the full article here.
MacDailyNews Take: Certainly bodes well for Apple and the iPhone.
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