The Axxia business mainly includes networking and infrastructure products for wireless networks and enterprise gateways.
Avago, which designs and develops analog semiconductors, bought LSI in December last year for $6.6 billion, and has been divesting units as it seeks to counter volatility in its main wireless business and focus on the fast-growing storage chip market, Reuters reports.
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- The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 24.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for AVAGO TECHNOLOGIES LTD is rather high; currently it is at 58.92%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.53% is above that of the industry average.
- Net operating cash flow has increased to $251.00 million or 31.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.39%.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 39.8% when compared to the same quarter one year prior, rising from $113.00 million to $158.00 million.
- Powered by its strong earnings growth of 35.55% and other important driving factors, this stock has surged by 86.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: AVGO Ratings Report
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