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Broadcom (AVGO) To Report Earnings Tomorrow: Here Is What To Expect


Adam Hejl /
2022/12/07 5:27 am EST
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Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter Broadcom reported revenues of $8.46 billion, up 24.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong sales guidance for the next quarter but an increase in inventory levels.

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 20.1% year on year to $8.89 billion, improving on the 14.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $10.29 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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1%.

Looking at Broadcom's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Allegro MicroSystems delivered top-line growth of 22.7% year on year, beating analyst estimates by 5.61% and Intel reported revenue decline of 20% year on year, exceeding estimates by 0.24%. Allegro MicroSystems traded up 5.69% on the results, Intel was up 1.41%. Read our full analysis of Allegro MicroSystems's results here and Intel's results here.

There has been positive sentiment among investors in the segment, with the stocks up on average 7.85% over the last month. Broadcom is up 12.4% during the same time, and is heading into the earnings with analyst price target of $646.50, compared to share price of $525.30.

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.