NEW YORK (TheStreet) -- Shares of Broadcom Corp. (BRCM) are down 0.77% to $43.56 one day before its Analyst Day. Here's what Pacific Crest analysts are expecting from the global semiconductor solution provider's analyst event tomorrow:
"We believe Broadcom is likely to increase cash returns for the following reasons: estimated incremental free cash flow of $300 million-plus in 2015 versus 2014, more stable cash flow after the baseband exit, and estimated $2.5 billion to $3 billion of cash capability for returns versus current commitment of $850 million for 2015," analysts said.
"Every incremental $500 million of buyback could add five cents of EPS to our model," they noted.
"Given strong iPhone demand, which led to Avago Technologies' (AVGO) strong results and Synaptics' (SYNA) positive preannouncement, we expect Broadcom to raise Q4 revenue guidance to the high end of its prior range of $2 billion to $2.15 billion, which could lead to 7 cents of EPS upside with unchanged gross margin," analysts added.
Apple has traditionally used Broadcom chips in its entire range of Wi-Fi-capable devices, including the iPhone, iPad and Mac lines, according to Business Insider.
Separately, TheStreet Ratings team rates BROADCOM CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: