Broadcom (AVGO) To Report Earnings Tomorrow: Here Is What To Expect

Fabless chip and software maker Broadcom (NASDAQ:AVGO) will be reporting results tomorrow after the bell. Here’s what you need to know.

Broadcom beat analysts’ revenue expectations last quarter, reporting revenues of $18.02 billion, up 28.2% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and revenue guidance for next quarter beating analysts’ expectations.

This quarter, the market is expecting Broadcom’s revenue to grow 28.8% year on year, improving from the 24.7% 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 to 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 Q4 results, giving us a hint as to what we can expect. Qorvo delivered year-on-year revenue growth of 8.4%, meeting analysts’ expectations, and AMD reported revenues up 34.1%, topping estimates by 6%. Qorvo traded down 6.8% following the results while AMD was also down 17.3%.

Investors in the processors and graphics chips segment have had steady hands going into earnings, with share prices flat over the last month. Broadcom is down 6.4% during the same time and is heading into earnings with an average analyst price target of $454.43 (compared to the current share price of $309.96).