Broadcom Tumbles on Q2 Net Loss and 2 Other Hot Stocks to Watch
Broadcom Corp. (NASDAQ:BRCM): Current price $27.14
Late Tuesday, the semiconductor maker posted a second quarter GAAP net loss of $251 million, or 43 cents per share, compared to net income of $160 million, or 28 cents per share, year-over-year. The sharp drop in earnings was mostly due to an impairment charge of $501 million, or 87 cents per share, connected with the purchase of NetLogic Microsystems, Inc. At the same time, non-GAAP net income came to $436 million, or 70 cents per share, versus $435 million, or 72 cents per share, in the same quarter of 2012. Even with the year-over-year decrease, the adjusted earnings overall surpassed the Zacks Consensus Estimate of 49 cents. In mid-morning trade, shares are down almost 14 percent.
Dell Inc. (NASDAQ:DELL): Current price $12.81
Despite saying their last bid was final, Michael Dell and private equity firm Silver Lake hiked their proposal by one dime per share, taking it to $13.75. In a letter to the board of Dell, the parties termed the action as “representing an increase in the consideration to be paid to unaffiliated stockholders of approximately $150 million,” while a Dell statement said that the move caused the board to reschedule a shareholder vote on the privatization set for Wednesday to August 2, so as to evaluate the revised offer. As part of the new buyout offer, Michael Dell and Silver Lake are also proposing a change in the “unaffiliated stockholder approval” requirement in the merger agreement. Shares are up over 1 percent in New York on heavy volume.
Ford Motor Co (NYSE:F): Current price $17.41
The iconic automaker has pushed up its full-year outlook and reported a second quarter profit, which handily beat expectations on the strength of the company’s operations outside North America. Ford predicted that its pretax operating profit in 2013 would be “about equal or higher” than last year’s $8 billion, as opposed to “about equal.” In a research note, analyst Adam Jones at Morgan Stanley said, “Given Ford’s conservative nature, we view these seemingly subtle language changes as fairly aggressive.”