Technology

What to Expect When Broadcom Reports After the Close

Chris Lange

Published: December 6, 2018 10:30 am

Last Updated: January 11, 2020 2:05 pm

Broadcom Inc. (NASDAQ: AVGO) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Thursday. Thomson Reuters has consensus estimates of $5.58 in earnings per share (EPS) and $5.39 billion in revenue. The same period of last year reportedly had $4.59 in EPS and $4.85 billion in revenue.

This stock has been crushed over the past two months and is a top value play now among analysts, at least recently. Broadcom has an extensive semiconductor product portfolio that addresses applications within the wired infrastructure, wireless communications, enterprise storage and industrial end markets.

Applications for Broadcom’s products in its end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems and displays.

Top Wall Street analysts like the leadership in the mobile, data center and broadband markets, and especially in the radio frequency (RF) arena. Many on Wall Street expect a cyclical rebound in industrial and communications demand.

Here’s what a few analysts had to say about Broadcom ahead of the report:

• Credit Suisse has a Buy rating with a $300 price target.
• Deutsche Bank has a Buy rating with a $300 target price.
• B. Riley also has a Buy rating with a $300 price target.
• Wells Fargo has a Market Perform rating with a $265 price target.
• Morgan Stanley has an Equal Weight rating and a $260 price target.
• JPMorgan’s Overweight rating comes with a $325 price target.

Excluding Thursday’s move, Broadcom had underperformed the broad markets, with its stock down 12% in the past 52 weeks. In just 2018 alone the stock was down nearly 10%.

Shares of Broadcom were last seen down about 4% at $223.23, in a 52-week range of $197.46 to $275.70. The stock has a consensus price target of $287.32.