AVGO up 9% SKWS to follow?

Avago beats, up 9% after hours. SWKS up 2.2% as a result.

Avago Technologies stock jumped late Wednesday after the Apple supplier reported fiscal Q4 earnings that topped Wall Street expectations, with full-year fiscal 2015 EPS jumping 83% from fiscal 2014.

Q4, Avago reported $1.84 billion in sales and $2.51 earnings per share ex items, up 16% and 26%, respectively, vs. the year-earlier quarter.

Sales narrowly missed the $1.85 billion consensus estimate of 24 analysts polled by Thomson Reuters, but EPS ex items easily topped analyst views of $2.38.

For the fiscal year, Avago smashed records with $6.8 billion in sales, up 60% from fiscal 2014. EPS ex items jumped to $8.98, topping the $8.84 analyst estimate.

Wireless sales accounted for 37% of Avago’s Q4 sales and rose 10% sequentially during the seasonally strong quarter as “our North American customer” ramped its flagship smartphone, Tan told analysts. He was almost certainly speaking of Apple, but not by name.(Duh! so that is good for SWKS)

Enterprise storage sales accounted for 35% of Q4 sales, rising 9% from Q3, Tan said.

Wireless Weakness To Hit Q1
For fiscal Q1, ending Jan. 31, Avago guided to $1.768 billion in sales, plus or minus $25 million — the midpoint slightly short of Wall Street forecasts for $1.82 billion. That would be up 8% year over year at the midpoint but would mark the company’s smallest gain since the July 2013 quarter.
“Unlike last year, we do see a seasonal decline in Q1 demand and expect our wireless revenue to decline in the low teens,” Tan said. “Last year, Q1 (wireless) demand held out, offsetting seasonal declines. We don’t see that phenomenon this year.”