Stock Pick

  • Broadcom Reports Solid Results, Dividend As Analysts Boost PTs

    Broadcom Reports Solid Results, Dividend As Analysts Boost PTsBroadcom (AVGO) has reported an in-line April quarter, and guided to an in-line July quarter at $5.75B (consensus $5.8B). Shares in AVGO gained 1% in Thursday’s after-hours trading following the earnings release.Specifically, Q2 Non-GAAP EPS of $5.14 was in-line with consensus expectations, while GAAP EPS of $1.17 beat by $0.21. Revenue of $5.74B climbed 4% from the previous year, and topped Street estimates by $50M. Meanwhile Q2 adjusted EBITDA was $3.2B, again, coming in slightly higher than the $3.11B consensus.Semiconductor Solutions reported revenue of $4,027M (-1% y/y) but Infrastructure software revenue came in strong at $1,715M (+21% y/y).“Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19,” commented Hock Tan, CEO of Broadcom Inc. “Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless.”At the same time the company declared a $3.25/share quarterly dividend, in line with previous payouts, for a forward yield of 4.2%.“We generated record quarterly free cash flow of over $3 billion and reinforced our balance sheet, ending the quarter with over $9 billion of cash,” explained Tom Krause, CFO of Broadcom Inc. As a result, AVGO “remain[s] committed to maintaining our dividend while we navigate these unprecedented times.”Following the report Mizuho Securities analyst Vijay Rakesh reiterated his AVGO buy rating while ramping up his price target from $315 to $325 (5% upside potential).“We continue to see AVGO as well positioned, driven by 5G networking and wireless, software M&A, strong FCF, and dividends, with near-term COVID-19 headwinds subsiding” Rakesh told investors, adding that the company is currently trading at an attractive ~13.1x F21E (Oct) P/E.Likewise RBC Capital’s Mitch Steves boosted his price target from $300 to $340 noting that AVGO is seeing much more demand than it can currently supply for Q3. “AVGO is seeing strong uplift in demand from the ramp of next-generation deep learning inference chips” the analyst wrote, while demand from enterprise customers for data protection controllers has recovered and is showing strength.Overall, AVGO scores a bullish Strong Buy Street consensus, with 19 buy ratings offset by 2 hold ratings. However, the average analyst price target stands at $303, indicating downside potential of 2%. Shares in AVGO are trading down 2% year-to-date. (See AVGO stock analysis on TipRanks).Related News: Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal Ebay Lifts Quarterly Sales and Profit Forecast; Shares Jump To All-Time High Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G Expansion More recent articles from Smarter Analyst: * Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal * Seanergy’s Shipping Rates Set to Rebound While Equity Raises Will Reduce Debt, Says Analyst * 3 Under-The-Radar Cannabis Stocks Ready to Bounce * AstraZeneca Seeks To Make 2 Billion Covid-19 Vaccine Doses With New Supply Deals

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  • 3 tax tips for investors in 2020

    Tax Time Ahead, asx 200

    June and winter are upon us and that means tax time is, too. If you currently own ASX shares, you’re likely looking for tax tips for investors. Doing our taxes each year can be time-consuming and expensive, depending on how you choose to have your tax affairs managed. But it’s an important time, nonetheless, and one that can have some serious impacts on your finances.

    Successful investing normally comes with a bittersweet reality – we have to share our success with the taxman. It’s the price we all pay for a civilised society, as they say.

    But that doesn’t mean there’s not a right way and a wrong way to doing our taxes. So below I’ve listed 3 tax tips for investors! Remember, this is all just general advice, make sure to check with a licensed tax professional regarding your own situation.

    Tip 1) Claim all the deductions you are entitled to

    Investing can take up a lot of time and money. Staying on top of things in the investing world can often cost you some serious coin. Newspaper subscriptions, investing memberships or accounting software fees are some of the many costs one can occur in managing an investment portfolio. Luckily, most costs that are directly applicable to running your investments are usually tax-deductible. So make sure you’re claiming all relevant costs that you might incur as part of your investing activities, including any capital losses.

    Tip 2) Detail all of your income

    There are many different ways you can make money in the course of an investment. There’s buying and selling shares and receiving dividends for one. But there are also managed fund distributions and foreign currency gains as well. Not to mention trading cryptocurrencies or options.

    To the chagrin of some, no matter where or how you get the money in the course of your investing activities, it’s probably taxable. So don’t get yourself into a sticky situation with our friends at the Australian Taxation Office (ATO) and make sure you report any and all income you earn from your investments.

    Tip 3) Earmark your return for ASX shares

    Many of us will be entitled to a refund of some tax when we eventually receive our tax returns. Whilst it’s very easy to go out and splash this money on some new clothes, a fancy dinner or a holiday (domestic this year), it’s an even better idea to earmark the cash as ‘investing money’ before you even get it.  That way, you can give your ASX shares portfolio a major boost without blinking an eye.

    Of course, if you would rather top up your savings for a rainy day then that’s completely fine. But think twice about how best to use a windfall this tax time. You might find that a new outfit or a night out on the town can wait.

    For some ideas on which ASX shares to buy with your tax return, make sure you check out the report below!

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    More reading

    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 tax tips for investors in 2020 appeared first on Motley Fool Australia.

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  • Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal

    Slack Plunges 15% Post-Print Despite Multi-Year Amazon DealShares in Slack Technologies (WORK) plunged 15% in Thursday’s after-hours trading after the company reported a solid F1Q21 but withdrew full year billings guidance. Slack also revealed an exciting new strategic collaboration with Amazon (AMZN)- but that wasn’t enough to send shares higher.Revenue, billings, margin, and FCF were ahead of consensus with Q1 Non-GAAP EPS of -$0.02 beating Street expectations by $0.04. Similarly GAAP EPS of -$0.13 beat by $0.04 and revenue of $201.7M delivered strong year-over-year growth of 50%, while topping expectations by $13.58M.Meanwhile calculated billings came in at $206M vs consensus of $189.2M, and representing 38% year-over-year growth.F2Q guidance came in higher than consensus as well, and FY21 was raised on revenue, FCF and margin. Calculated billings guidance was withdrawn due to the ongoing uncertainties surrounding the COVID-19 pandemic, but the consensus had been for guidance of $1.000.9B (+30.8% Y/Y).“Q1 was a phenomenal quarter for Slack, with the addition of 12,000 net new Paid Customers and 50% revenue growth year-over-year,” said Stewart Butterfield, CEO and Co-Founder at Slack.“We believe the long-term impact the three months and counting of working from home will have on the way we work is of generational magnitude. This will continue to catalyze adoption for the new category of channel-based messaging platforms we created and for which we are still the only enterprise-grade offering” he added.At the same time Slack and Amazon announced a new multi-year agreement to deliver solutions for enterprise workforce collaboration.Development teams will now be able to communicate and manage their AWS resources from inside Slack. Slack will migrate its Slack Calls capability for voice and video calls to Amazon Chime, AWS’s communications service, and use AWS’s global infrastructure.“Together, AWS and Slack are giving developer teams the ability to collaborate and innovate faster on the front end with applications, while giving them the ability to efficiently manage their backend cloud infrastructure,” said Andy Jassy, CEO of AWS.Notably shares in Slack have already rallied a whopping 68% year-to-date, and as a result the stock scores a cautiously optimistic Moderate Buy consensus from the Street. Meanwhile the average analyst price target stands at $29 (23% downside potential). (See WORK stock analysis on TipRanks).“On the whole, we see a balanced view given multiple LT growth levers (new customers/users, international expansion, etc.) offset by potential second-derivative macro pressure points. Maintain perform, viewing Slack as fairly valued at ~18x EV/sales on our FY22 estimates” explained Oppenheimer’s Ittai Kidron following the earnings report.Related News: Nio Rising On Record-High Monthly Deliveries, Goldman Sachs Upgrade Ebay Lifts Quarterly Sales and Profit Forecast; Shares Jump To All-Time High Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G Expansion More recent articles from Smarter Analyst: * Broadcom Reports Solid Results, Dividend As Analysts Boost PTs * Seanergy’s Shipping Rates Set to Rebound While Equity Raises Will Reduce Debt, Says Analyst * 3 Under-The-Radar Cannabis Stocks Ready to Bounce * AstraZeneca Seeks To Make 2 Billion Covid-19 Vaccine Doses With New Supply Deals

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