LONDON, UK / ACCESSWIRE / June 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Broadcom Ltd (NASDAQ: AVGO), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AVGO, following the Company's release of its second quarter fiscal 2017 financial results on June 01, 2017. The semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets outperformed top- and bottom-line expectations. Broadcom also provided guidance for Q3 FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For its second quarter of fiscal year 2017 ended April 30, 2017, Broadcom's net revenue was $4.19 billion, reflecting an increase of 18% compared to revenue of $3.54 billion in Q2 FY16. The Company's net revenue from continuing operations was $4.20 billion, also up 18% from $3.56 billion in the prior year's same quarter. The revenue number came in ahead of analysts' expectations of $4.11 billion.

For Q2 FY17, Broadcom's gross margin was $1.98 billion, or 47.2% of net revenue, compared to gross margin of $1.05 billion, or 29.5% of net revenue, in Q2 FY16. The Company's gross margin from continuing operations was $2.65 billion, or 63.1% of net revenue, for the reported quarter, compared with gross margin from continuing operations of $2.14 billion, or 60.0%, in the year earlier comparable quarter.

During Q2 FY17, Broadcom's operating income totaled $474 million, or 11.3% of net revenue, as compared with an operating loss of $1.00 billion, or 28.3% of net revenue, in Q2 FY16. The Company's operating income from continuing operations for the reported quarter totaled $1.85 billion, or 44.1% of net revenue, compared with operating income of $1.33 billion, or 37.3% of net revenue, in the year earlier corresponding quarter.

Broadcom's net income attributable to ordinary shares was $440 million, or $1.05 per diluted share, in Q2 FY17 compared to net loss of $1.09 billion, or $3.02 per diluted share, in Q2 FY16. The Company's non-GAAP net income from continuing operations was $1.67 billion, or $3.69 per diluted share, compared with net income of $1.12 billion, or $2.53 per diluted share, in the year ago same quarter. Broadcom's results surpassed Wall Street's expectations of $3.36 per share.

Segment Results

During Q2 FY17, Broadcom's Wired Infrastructure segment generated revenues of $2.11 billion, up 2% compared to revenue of $2.06 billion in Q2 FY16. The Company's Wireless Communications division revenue surged 45% to $1.15 billion in the reported quarter versus revenue of $792 million in the prior year's comparable quarter.

Broadcom's Enterprise Storage revenue advanced 36% to $712 million for Q2 FY17 compared with revenue of $525 million in Q2 FY16. The Company's Industrial & other division recorded revenue of $217 million against revenue of $164 million in the prior year's same quarter.

Cash Matters

Broadcom's cash balance at the end of the second fiscal quarter was $4.25 billion compared to $3.54 billion at the end of the prior quarter. The Company generated $1.58 billion in cash from operations during the reported quarter and spent $256 million on capital expenditures.

Broadcom's Board of Directors has approved a quarterly, interim cash dividend of $1.02 per ordinary share. A corresponding distribution will also be paid by the Company's subsidiary, Broadcom Cayman L.P. (Partnership), of which the Company is the General Partner, to holders of (restricted exchangeable limited partnership units, or REUs), in the amount of $1.02 per REU.

The Company's dividend and the distribution are both payable on June 30, 2017, to shareholders or unit-holders of record, as applicable, at the close of business on June 19, 2017.

Outlook

For Q3 FY17, Broadcom is forecasting revenue of $4.445 billion, plus or minus $75 million, while non-GAAP revenue is expected to be $4.450 billion plus or minus $75 million. The Company's estimates non-GAAP gross margin of 63%, plus or minus 1%, and non-GAAP operating expense of $787 million. Broadcom's capital expenditures are expected to be approximately $240 million and depreciation is projected to be $118 million.

Stock Performance

On Wednesday, June 21, 2017, the stock closed the trading session at $245.12, climbing 2.14% from its previous closing price of $239.99. A total volume of 3.50 million shares have exchanged hands, which was higher than the 3-month average volume of 2.60 million shares. Broadcom's stock price skyrocketed 12.74% in the last three months, 35.83% in the past six months, and 57.32% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 38.67%. The stock has a dividend yield of 1.66%. At Wednesday's closing price, the stock's net capitalization stands at $99.11 billion.

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SOURCE: Pro-Trader Daily