Fabless chip and software maker Broadcom (NASDAQ: AVGO) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Broadcom met analysts’ revenue expectations last quarter, reporting revenues of $15 billion, up 20.2% year on year. It was a slower quarter for the company, with revenue guidance for next quarter slightly missing analysts’ expectations and an increase in its inventory levels.
Is Broadcom a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Broadcom’s revenue to grow 21.6% year on year to $15.9 billion, slowing from the 47.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.66 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Broadcom has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Broadcom’s peers in the processors and graphics chips segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Qorvo’s revenues decreased 7.7% year on year, beating analysts’ expectations by 5.3%, and Lattice Semiconductor reported flat revenue, in line with consensus estimates. Qorvo traded up 2.3% following the results while Lattice Semiconductor was also up 15.2%.
Read our full analysis of Qorvo’s results here and Lattice Semiconductor’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 3.7% on average over the last month. Broadcom’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $305.99 (compared to the current share price of $295.50).
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