Broadcom Beats On Earnings, But The Chart Shows Gains Are Range-Bound

 

 

Broadcom Beats On Earnings, But The Chart Shows Gains Are Range-Bound
Broadcom Beats On Earnings, But The Chart Shows Gains Are Range-Bound

Summary:

  • Broadcom Inc (NASDAQ: AVGO) traded up 4 percent on Friday morning on news of a Q4 earnings beat before pulling back to close the day only 0.6 percent higher.
  • Based on its market cycles, we believe the stock will trade in a near term range, with lingering risk to the downside in the longer-term.

Broadcom Stock Weekly Chart

The semiconductor producer reported earnings per share of $5.85 and total revenue of $5.44 billion, above analyst estimates of $5.58 and $5.39 billion. For next year, management provide guidance of $24.5 billion, which was above the average analyst estimate.

CEO Hock Tan explained that the results, “Reflect strong year-on-year growth for our networking and computing offload businesses driven by robust demand from the cloud data center markets, as well as traditional enterprises.”

Looking at the market cycles for Broadcom, we can see that it has been in a corrective pattern which is now near completion. As well, the stock has formed a major top, which suggests a near term range of $220-250, with odds of lower prices into 2019.

Related Links:

Broadcom Analysts Downplay Execution Risks, Reduced Transparency Following Strong Q4, Dividend Hike

After Cirrus Lowers Guidance On Smartphone Weakness, Sell-Side Follows Suit

 

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

This article was written by cool news network.

 

 

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