Broadcom (AVGO) Q1 Earnings: What To Expect

Radek Strnad /
2022/03/02 6:01 am EST
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Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Broadcom reported revenues of $7.4 billion, up 14.5% year on year, in line with analyst expectations. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but a slow revenue growth.

Is Broadcom buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Broadcom's revenue to grow 14.2% year on year to $7.6 billion, in line with the 13.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.13 per share.

Broadcom Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.39%.

Looking at Broadcom's peers in the semiconductor segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Intel delivered top-line growth of 2.75% year on year, beating analyst estimates by 11.8% and Micron reported revenues already before the holidays, up 33.1% year on year, exceeding estimates by 0.13%. Intel traded down 2.12% on results, Micron Technology was up 7.1%. Read our full analysis of Intel's results here and Micron Technology's results here.

Tech stocks have been under pressure since the end of last year and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.93% over the last month. Broadcom is down 3.28% during the same time, and is heading into the earnings with analyst price target of $673.89, compared to share price of $573.22.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.