Broadcom Earnings: What To Look For From AVGO

Jabin Bastian /
2023/03/01 4:24 am EST
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Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter Broadcom reported revenues of $8.93 billion, up 20.6% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement 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 15.4% year on year to $8.9 billion, in line with the 15.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $10.17 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 0.99%.

Looking at Broadcom's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Photronics delivered top-line growth of 11.2% year on year, beating analyst estimates by 5.02% and ON Semiconductor reported revenues up 8.15% year on year, exceeding estimates by 5.32%. Photronics traded flat on the results, ON Semiconductor was down 3.89%. Read our full analysis of Photronics's results here and ON Semiconductor's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks down on average 0.06% over the last month. Broadcom is up 1.62% during the same time, and is heading into the earnings with analyst price target of $657.5, compared to share price of $594.51.

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