"I'd take a second look at the stock but I wouldn't rush in here."
“The stock has had trouble at the $35-$36 level. I’d be cautious about piling in, “adds Guy Adami.
Those were the Fast traders’ knee-jerk reactions after Broadcom releasedearnings that beat expectations.
And perhaps more important, Broadcom issued a first-quarter revenue target in a range of $1.7 billion to $1.8 billion, implying a midpoint that is slightly higher than Wall Street expectations for $1.73 billion, according to Thomson Reuters I/B/E/S.
“Historically this is the quarter where operating expenses tend to rise but the guidance looks solid. This may motivate Street analysts to revise earnings higher,” says Joe Terranova.
By the numbers fourth-quarter net income fell to $254 million, or 45 cents per share, compared with $266 million or 47 cents per share in the year-ago quarter.
But excluding unusual items its earnings per share of 68 cents beat Street expectations of 65 cents per share according to Thomson Reuters I/B/E/S.
Revenue fell to $1.82 billion from $1.95 billion and compared with the average expectation for $1.8 billion from Wall Street analysts, according to Thomson Reuters I/B/E/S.
The maker of chips used in a range of products from cell phones and set-top boxes also raised its dividend by 11 percent.