Avago Technologies Falls Slightly After Q4 Results
Avago Technologies (NASDAQ: AVGO) is down more than one percent in after hours trading after the firm announced its fourth quarter results.
The company reported a Q4 adjusted EPS of $0.89 versus the Street estimate of $0.82.
Revenue came in at $738 million versus the Street estimate of $731.58 million. Sales were up 19 percent year-over-year.
"Major product ramps at both of the largest smartphone OEM customers, continued strength in datacenter spending and a stronger than expected contribution from the CyOptics business helped drive sequential revenue growth of 15% in the fourth quarter," Hock Tan, President and CEO of Avago Technologies, said in a company release.
"Looking into the first quarter of 2014 we expect revenue to decline in all of our target markets with our typical seasonality. We also expect wireless will continue to face volatility throughout the year caused by major product launches."
Avago has been one of the positive stories to come out of the Apple supply chain skirmish. While the company could take a hit if the iPhone declines, Apple has increased smartphone sales for the last several quarters. The iPhone 5C may not be performing overly well, but the iPhone 5S seems to be making up for its shortcomings.
Year-to-date, Avago is up more than 37 percent. This is significantly higher than Apple, which is up only three percent this year.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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