Earnings In Focus: June 7 (AVGO, SJM, COO)

(RTTNews) - What to look for in Broadcom Ltd. (AVGO), J. M. Smucker Co. (SJM), and The Cooper Companies Inc. (COO) on Thursday, June 7, 2018?

Semiconductor company Broadcom Ltd. (AVGO) expects strong growth in its wired, storage and industrial segments to fully offset the impact of a much higher than normal seasonal decline in wireless revenue.

Th company is slated to report its second-quarter financial results and business outlook after the bell today. Analysts polled by Thomson Reuters expect earnings of $4.76 per share on revenue of $5 billion for the quarter. Analysts' estimate typically exclude certain special items.

* Now sees Q2 non-GAAP net revenue of $5 bln, plus or minus $25 mln * Expects Q2 CapEx to be about $190 mln * Expects Q2 free cash flow to exceed 40% of revenue

During the quarter, the company expects a much larger than typical seasonal decline in wireless revenue as shipments to its North American smartphone customer will trend down sharply from the exaggerated first quarter. Broadcom expects to partially offset this decline from an increase in its product shipments to support the ramp of next generation flagship phone at a large Korean smartphone customer.

Year-Ago Numbers:

* Net revenue - $4.19 bln * Net income - $440 mln * EPS - $1.05 * Non-GAAP income from cont. ops. - $1.67 bln * Non-GAAP EPS from cont. ops. - $3.69.

Q3 Outlook

* Expects Q3 non-GAAP net revenue of $5.05 bln, plus or minus $75 mln; Consensus - $5.06 bln.

The company expects continued strength in demand from datacenters while wireless remains weak.

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Food and beverage products maker J. M. Smucker Co. (SJM) will publish its fourth-quarter financial results before the bell today, with Wall Street analysts estimating earnings of $2.18 per share and revenue of $1.8 billion. The results are likely to benefit from the U.S. income tax reform and ongoing cost discipline.

Year-Ago Numbers:

* Net sales - $1.78 bln * Net income - $110.4 mln * EPS - $0.96 * Adj. Income - $206.7 mln * Adj. EPS - $1.80

FY18 Guidance

* Now sees FY18 adj. EPS of $8.20 - $8.30 versus prior view of $7.75 - $7.90 * Now expects FY18 net sales to be flat to down slightly.

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The Cooper Companies Inc. (COO), a global medical device company, is set to release its Q2 results on Thursday, June 7, 2018, at 4:15 PM ET. Analysts expect earnings of $2.84 per share and revenue of $627.11 million for the quarter.

Year-Ago Numbers:

* Revenue - $522.4 mln * GAAP Net income - $104.9 mln * GAAP EPS - $2.12 * Non-GAAP EPS - $2.50

Key Takeaways:

* Operating in two solid markets with high barriers to entry * Revenue growth exceeding the market * Investing in the infrastructure of the business * Positioned to achieve long term objectives * Track record of success

Updated FY18 Guidance:

* Now expects FY18 total revenue of $2.51 bln - $2.56 bln; Consensus - $2.53 bln. * Now sees FY18 non-GAAP EPS of $11.70 - $11.90; Consensus - $11.80/Shr.

Long Term Objectives (2017 - 2022E):

* Complete strategic acquisitions * Grow revenue faster than the markets * Grow EPS faster than revenue * Expand CVI and CSI geographically * Generate over $2.5 bln in free cash flow * Expects to generate 2022E operating margin of about 32%.

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