Avago Technologies' Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of radio-frequency chip designer Avago Technologies (NAS: AVGO) jumped 14.3% overnight on heavy volume.
So what: Last night's third-quarter report left analysts flat-footed on both the top and bottom lines. Moreover, revenue guidance for the fourth quarter suggests that the good times will keep rolling.
Now what: Sales advanced across the board with particular strength in the wireless communications and consumer peripherals segments. "We continue to believe revenue will grow for the balance of the fiscal year due to share gains with certain wireless and wired OEMs," said CEO Hock Tan, and that market-share growth would be bad news for segment rivals Finisar (NAS: FNSR) , Texas Instruments (NYS: TXN) , and LSI (NYS: LSI) . The company has a history of walking the walk, beating earnings expectations in every one of its eight quarters as a publicly traded company.
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