Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be reporting results tomorrow after the bell. Here's what to look for.
Last quarter Broadcom reported revenues of $9.30 billion, up 4.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with full-year revenue guidance missing analysts' expectations, but it expects higher adjusted FY24 EBITDA profitability, partly thanks to its acquisition of software company VMware, which closed in November. In addition, its adjusted EBITDA and EPS outperformed Wall Street's estimates.
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 31.5% year on year to $11.72 billion, improving on the 15.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $10.42 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.7%.
Looking at Broadcom's peers in the processors and graphics chips segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Qualcomm delivered top-line growth of 5.1% year on year, beating analyst estimates by 4.4% and Lattice Semiconductor reported revenue decline of 3% year on year, missing analyst estimates by 3.3%. Qualcomm traded up 2.5% on the results, and Lattice Semiconductor was down 12.3%.
Read our full analysis of Qualcomm's results here and Lattice Semiconductor's results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with the stocks up on average 8.7% over the last month. Broadcom is up 10.7% during the same time, and is heading into the earnings with analyst price target of $1,258.5, compared to share price of $1,354.
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