Analysts Anticipate Broadcom Inc (AVGO) Will Announce Earnings of $4.77 Per Share

Wall Street brokerages forecast that Broadcom Inc (NASDAQ:AVGO) will post earnings per share (EPS) of $4.77 for the current quarter, Zacks reports. Twelve analysts have provided estimates for Broadcom’s earnings, with estimates ranging from $4.66 to $4.84. Broadcom reported earnings per share of $3.69 during the same quarter last year, which would indicate a positive year over year growth rate of 29.3%. The firm is scheduled to report its next quarterly earnings results after the market closes on Thursday, June 7th.

According to Zacks, analysts expect that Broadcom will report full year earnings of $19.49 per share for the current financial year, with EPS estimates ranging from $19.00 to $20.12. For the next financial year, analysts forecast that the company will report earnings of $20.22 per share, with EPS estimates ranging from $18.67 to $21.80. Zacks’ EPS averages are an average based on a survey of research analysts that cover Broadcom.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, March 15th. The semiconductor manufacturer reported $5.12 earnings per share for the quarter, beating the consensus estimate of $4.41 by $0.71. Broadcom had a return on equity of 29.50% and a net margin of 41.37%. The business had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.32 billion. During the same period last year, the business earned $3.63 EPS. The business’s revenue was up 28.5% on a year-over-year basis.

AVGO has been the topic of several recent analyst reports. Morgan Stanley raised their price objective on Broadcom from $305.00 to $320.00 and gave the company an “overweight” rating in a research note on Monday, April 30th. Canaccord Genuity restated a “buy” rating and set a $340.00 price objective (up from $325.00) on shares of Broadcom in a research note on Friday, March 16th. Jefferies Group restated a “buy” rating and set a $332.00 price objective on shares of Broadcom in a research note on Friday, March 16th. SunTrust Banks dropped their price objective on Broadcom to $335.00 and set a “buy” rating on the stock in a research note on Tuesday, March 13th. They noted that the move was a valuation call. Finally, Cowen restated an “outperform” rating on shares of Broadcom in a research note on Thursday. One analyst has rated the stock with a sell rating, four have assigned a hold rating, thirty-two have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $308.96.

Broadcom traded down $3.46, hitting $235.99, during trading hours on Tuesday, MarketBeat Ratings reports. 2,526,200 shares of the company traded hands, compared to its average volume of 3,626,425. The company has a current ratio of 5.70, a quick ratio of 5.04 and a debt-to-equity ratio of 0.60. Broadcom has a one year low of $221.98 and a one year high of $285.68. The stock has a market cap of $96.93 billion, a PE ratio of 16.50, a price-to-earnings-growth ratio of 1.13 and a beta of 0.95.

Broadcom announced that its Board of Directors has authorized a stock repurchase program on Thursday, April 12th that permits the company to repurchase $12.00 billion in shares. This repurchase authorization permits the semiconductor manufacturer to reacquire up to 12.2% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its stock is undervalued.

In related news, CFO Thomas H. Krause sold 3,171 shares of Broadcom stock in a transaction dated Wednesday, March 14th. The stock was sold at an average price of $259.81, for a total value of $823,857.51. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Kirsten M. Spears sold 199 shares of Broadcom stock in a transaction dated Friday, March 2nd. The stock was sold at an average price of $243.88, for a total value of $48,532.12. The disclosure for this sale can be found here. In the last three months, insiders sold 78,675 shares of company stock valued at $20,078,429. 3.30% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Schwab Charles Investment Management Inc. increased its holdings in Broadcom by 4.2% in the 4th quarter. Schwab Charles Investment Management Inc. now owns 1,350,163 shares of the semiconductor manufacturer’s stock worth $346,857,000 after acquiring an additional 53,921 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in Broadcom by 0.8% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 80,853 shares of the semiconductor manufacturer’s stock valued at $20,771,000 after buying an additional 656 shares in the last quarter. Field & Main Bank purchased a new position in Broadcom during the 4th quarter valued at about $2,342,000. Solaris Asset Management LLC grew its holdings in Broadcom by 10.1% during the 4th quarter. Solaris Asset Management LLC now owns 16,421 shares of the semiconductor manufacturer’s stock valued at $4,219,000 after buying an additional 1,504 shares in the last quarter. Finally, Buckley Wealth Management LLC purchased a new position in Broadcom during the 4th quarter valued at about $809,000. 89.02% of the stock is owned by institutional investors.

About Broadcom

Broadcom Limited designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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Earnings History and Estimates for Broadcom (NASDAQ:AVGO)

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