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Broadcom (AVGO) to Report Q4 Earnings: What's in the Cards?

Broadcom AVGO is set to report its fourth-quarter fiscal 2023 results on Dec 7.

For the quarter, Broadcom expects revenues of $9.27 billion, indicating a 4% year-over-year rise.

The Zacks Consensus Estimate for revenues is pegged at $9.28 billion, suggesting growth of 3.91% from the year-ago quarter’s reported figure.

The consensus mark for earnings has been unchanged at $10.95 per share over the past 30 days, indicating 4.78% growth from the figure reported in the year-ago quarter.

Broadcom’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 1.61%.

Broadcom Inc. Price and EPS Surprise

 

Broadcom Inc. Price and EPS Surprise
Broadcom Inc. Price and EPS Surprise

Broadcom Inc. price-eps-surprise | Broadcom Inc. Quote

Let’s see how things have shaped up for Broadcom prior to this announcement:

Factors to Consider

Broadcom’s top-line growth is expected to have benefited from strong demand for its networking solutions, which include Tomahawk and Jericho switches. Strong adoption of these solutions due to the rapid adoption of generative AI is expected to have driven networking’s top-line growth in the to-be-reported quarter.

Broadcom expects revenues related to generative AI to grow 50% sequentially in the fiscal fourth quarter. It expects networking revenues to rise 20% on a year-over-year basis.

Wireless revenues are expected to grow 20% sequentially.

However, moderate enterprise demand for storage adapters is expected to have hurt storage connectivity revenues, which Broadcom expects to decline in the mid-teens percent on a year-over-year basis.

Broadband revenues are expected to decline year over year in the high-single digits in the fiscal fourth quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Broadcom has an Earnings ESP of -0.06% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Core & Main CNM currently has an Earnings ESP of +3.86% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CNM shares have returned 86.9% year to date. Core & Main is set to report its third-quarter fiscal 2023 results on Dec 5.

Casey’s General Stores CASY has an Earnings ESP of +13.86% and carries a Zacks Rank #2.

Casey’s General is set to release its second-quarter fiscal 2024 results on Dec 11. CASY shares have gained 23.5% year to date.

Lennar LEN has an Earnings ESP of +0.74% and a Zacks Rank #2.

LEN shares have gained 45.3% year to date. Lennar is set to report its fourth-quarter fiscal 2023 results on Dec 14.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lennar Corporation (LEN) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report

Core & Main, Inc. (CNM) : Free Stock Analysis Report

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