Stock in News Spotlight: Broadcom Inc. (NASDAQ: AVGO)

On 14 May 2020, Broadcom Inc. (NASDAQ: AVGO) stock observed trading -19.60% off 52-week high price. On the other end, the stock has been noted 71.26% away from low price over the last 52-weeks. The stock disclosed a move of 7.92% away from 50 day moving average and -6.62% away from 200 day moving average. Moving closer, we can see that shares have been trading 0.69% off 20-day moving average. It has market cap of $106106.8M and dividend yield of 4.88%.

Broadcom Inc. (AVGO) recently stated financial results for its first quarter of fiscal year 2020, ended February 2, 2020, reported its quarterly dividend and updated guidance.

The Company’s cash and cash equivalents at the end of the first fiscal quarter were $6,444M , contrast to $5,055M at the end of the previous quarter.

During the first fiscal quarter, the Company generated $2,322M in cash from operations and spent $108M on capital expenditures.

On December 31, 2019, the Company paid a cash dividend of $3.25 per share of ordinary stock, totaling $1,297M and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $75M .

The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below, and presented in detail in the financial reconciliation tables attached to this release.

Second Quarter Fiscal Year 2020 Business Outlook

In light of the uncertainties in the global business environment arising from the effects of COVID-19, the Company is withdrawing its previous yearly guidance for fiscal year 2020, and providing guidance for its second fiscal quarter.

Based on current business trends and conditions, the outlook for the second quarter of fiscal year 2020, ending May 3, 2020, including contributions from the Symantec enterprise security business, is predictable to be as follows:

  • Second quarter revenue guidance of $5.7B plus or minus $150M
  • Second quarter Adjusted EBITDA of $3,135M plus or minus $75M, or 55% of revenue at the midpoint of guidance(1)

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

The USA based company Broadcom Inc. moved with change of 1.31% to $266.6 with the total traded volume of 1991193 shares in recent session versus to an average volume of 3699.63K. AVGO’s shares are at -17.71% for the quarter and driving a -12.41% return over the course of the past year and is now at -15.64% since this point in 2018.  Right now, the stock beta is 0.93. The average volatility for the week and month was at 3.29% and 3.01% respectively.

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