Avago's stock surged 7.5% to $82.09 on Friday on volume that was more than triple its three-month average of 1.7 million shares, hitting a 52-week intra-day high following the semiconductor supplier's fiscal third-quarter earnings report. The Singapore-based company is benefiting from its association with Apple as well as from its recent acquisition of LSI, acquired in May for $6.6 billion. Avago is also in the process of selling units deemed as outside its core business.
Late Thursday, the Singapore-based company reported adjusted net income from continuing operations of $347 million, or $1.26 a share, for the fiscal third-quarter compared to $188 million, or 74 cents a share, in the year-earlier period and earnings of $1.06 a share expected by analysts. Revenue from continuing operations doubled to $1.28 billion for the quarter. On a GAAP basis, the company reported a loss of $164 million, or 65 cents a share, from continuing operations. Avago forecasted revenue growth between 18% and 22% for its final quarter of the fiscal year.
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Several equity analysts raised their price targets on Avago's stock following earnings late Thursday. Here's what analysts were saying.John Vinh, Pacific Crest Securities (Outperform; Price Target raised to $90 from $85) We are buyers of AVGO and are increasing our target to $90 following solid execution on the top and bottom line. Upside to revenue guidance was driven by content gains at Apple, while LSI cost synergies resulted in EPS upside. Read More: Apple iPhone, Alibaba IPO Will Top Headlines After Labor Day