Broadcom (AVGO) Reports Earnings Tomorrow: What To Expect

Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be reporting results this Wednesday after the bell. Here’s what to look for.

Broadcom beat analysts’ revenue expectations last quarter, reporting revenues of $22.19 billion, up 47.9% year on year. It was a satisfactory quarter for the company, with revenue guidance for next quarter beating analysts’ expectations but an increase in its inventory levels.

Is Broadcom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Broadcom’s revenue to grow 84.8% year on year, improving from the 22% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Broadcom rarely misses Wall Street’s revenue estimates.

Looking at Broadcom’s peers in the processors and graphics chips segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Lattice Semiconductor reported revenues up 62.2%, topping estimates by 8.6%. Intel traded down 7.9% following the results while Lattice Semiconductor was also down 7%.

Read our full analysis of Intel’s results here and Lattice Semiconductor’s results here.

In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the processors and graphics chips stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.3% on average over the last month. Broadcom is down 5.3% during the same time and is heading into earnings with an average analyst price target of $525.97 (compared to the current share price of $371.30).

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