Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be reporting earnings this Thursday after market close. Here’s what you need to know.
Broadcom beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $15.95 billion, up 22% year on year. It was a strong quarter for the company, with a meaningful improvement in its inventory levels and revenue guidance for next quarter topping analysts’ expectations.
Is Broadcom a buy or sell going into earnings? Read our full analysis here.
This quarter, analysts are expecting Broadcom’s revenue to grow 24.4% year on year to $17.49 billion, slowing from the 51.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.87 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Broadcom has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at Broadcom’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Qorvo delivered year-on-year revenue growth of 1.1%, beating analysts’ expectations by 1.9%, and Qualcomm reported revenues up 10%, topping estimates by 4.8%. Qorvo traded down 7.7% following the results while Qualcomm’s stock price was unchanged.
Read our full analysis of Qorvo’s results here and Qualcomm’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 7% on average over the last month. Broadcom is up 13.2% during the same time and is heading into earnings with an average analyst price target of $412.02 (compared to the current share price of $405.66).
While there is no doubt that generative AI will have a massive impact on the world, it will undoubtedly create some challenges. For example, we don’t always know whether the "user" on the other end of the connection is real or robot. And that’s why we are buying this perfectly poised software stock already growing massively by helping corporations solve that very problem.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.