Fabless chip and software maker Broadcom (NASDAQ: AVGO) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Broadcom beat analysts’ revenue expectations last quarter, reporting revenues of $19.31 billion, up 29.5% year on year. It was a strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a narrow beat of analysts’ adjusted operating income estimates.
Is Broadcom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Broadcom’s revenue to grow 47.1% year on year, improving from the 20.2% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Broadcom rarely misses Wall Street’s revenue estimates.
Looking at Broadcom’s peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lattice Semiconductor delivered year-on-year revenue growth of 42.2%, beating analysts’ expectations by 3.6%, and Intel reported revenues up 7.2%, topping estimates by 9.6%. Lattice Semiconductor traded down 2.6% following the results while Intel was up 23.6%.
Read our full analysis of Lattice Semiconductor’s results here and Intel’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 21.3% on average over the last month. Broadcom is up 13.4% during the same time and is heading into earnings with an average analyst price target of $485.72 (compared to the current share price of $472.23).
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