Keris Alison Lahiff of TheStreet bestowed the title “TheStreet’s Move of the Day” on Avago Technologies Ltd (NASDAQ:AVGO). The company’s semiconductor devices have a bright future with significant growth prospects in terms of revenues, since one of the firm’s largest customers is Apple Inc. (NASDAQ:AAPL).
The company beat the analyst’s expectations for its third quarter earnings as its Earnings per Share (EPS) $1.26 were $0.20 higher than what the analysts predicted. This represents an increase from a $0.74 EPS seen in the same quarter last year. Furthermore, the revenues climbed 84% Year on Year to $1,2 billion. This consequently lead to the stock gaining 7.5% last Friday and the shares are currently trading at $84, a gain of over 2%.
Talking about the impact of Apple Inc. (NASDAQ:AAPL)’s new iPhone, Lahiff mentioned that according to the technology research-based Investment bank Pacific Crest, “Avago’s wireless components will be double what they were in the iPhone 5S.”
Moreover, Avago Technologies Ltd (NASDAQ:AVGO) acquired data storage company LSI Corporation at the beginning of May and this was the first full quarter in which the acquired company acted as a completely integrated division of the Apple Inc. (NASDAQ:AAPL)’s supplier. With the quarterly figures that the company just posted, it seems to be benefitting considerably from this synergy as well.
Needless to say that Apple Inc. (NASDAQ:AAPL)’s iPhone 6 will have a significant positive impact on the company’s earnings, but the company has more to offer as well. Although the company’s wireless communication division promises strong growth in the future, its other two divisions, wired infrastructure, and industrial and others also have a strong market in this era of technological dependence. Moreover, with thousands of different products under their belt, Avago Technologies Ltd (NASDAQ:AVGO) also promises product diversity.