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Broadcom (AVGO) to Report Q4 Earnings: What's in the Offing?
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Broadcom (AVGO - Free Report) is slated to report fourth-quarter fiscal 2020 results on Dec 10.
For fourth-quarter fiscal 2020, the company anticipates revenues of $6.4 billion (+/- $150 million). The Zacks Consensus Estimate is currently pegged at $6.42 billion, indicating an improvement of 11.1% from the year-ago quarter.
We note that the Zacks Consensus Estimate for earnings has been stable in the past 30 days at $6.24. The figure suggests growth of 15.8% from the prior-year reported figure.
Factors to Note
Broadcom’s fiscal fourth-quarter performance is likely to have benefited from momentum in the enterprise business and substantial customer base, which, in turn, is expected to have aided it in expanding presence in the infrastructure software space. This might have driven Infrastructure software revenues in the fiscal fourth quarter.
Moreover, synergies from the buyouts of Brocade, CA and Symantec’s enterprise security business are anticipated to have aided Broadcom’s fiscal fourth-quarter performance. Markedly, Symantec’s enterprise security business contributed more than $400 million to revenues in third-quarter fiscal 2020. Moreover, revenues from Brocade and CA improved 3% and 6%, respectively, on a year-over-year basis.
Further, the coronavirus crisis-induced work-from-home trend is expected to have driven the adoption of cloud-based infrastructure software solutions, which is likely to get reflected in the to-be-reported quarter’s top line .
Notably, the Zacks Consensus Estimate for the Infrastructure Software segment revenues for the fiscal fourth quarter is pegged at $1.624 billion. In third-quarter fiscal 2020, Infrastructure software revenues improved 41% year over year to $1.602 billion.
Robust adoption of Wi-Fi 6 in next-generation access gateway, courtesy of solid demand from enterprises, telcos and other service providers, is expected to have contributed to growth in revenues across the broadband end market in the fiscal fourth quarter.
Besides, Broadcom, currently carrying a Zacks Rank #3 (Hold), may have benefited from solid momentum across server storage connectivity, and the robust adoption of data protection controllers from enterprise customers. This is expected to have bolstered growth in the quarter under review.
Further, a solid uptick of DSL and PON and next-generation cable DOCSIS 3.1 products, and the latest enterprise and residential suite of Wi-Fi 6E-compliant solutions is expected to have benefited the top-line performance in the fiscal fourth quarter.
Also, incremental adoption of SmartNIC adapters, which enable cloud players to accelerate dynamic workloads in a cost-effective manner in a secure infrastructure, is also anticipated to have contributed to Semiconductor solutions’ revenues in the fiscal fourth quarter.
However, growth might have been limited by a sharp decline in video, particularly in satellite set-top boxes, amid the coronavirus pandemic-led constraints on live sporting events. Further, increasing lead times, is an overhang.
Notably, the Zacks Consensus Estimate for the Semiconductor solutions segment’s revenues for the fiscal fourth quarter is pegged at $4.783 billion. In third-quarter fiscal 2020, Semiconductor solutions’ revenues totaled $4.219 billion, down 4% on a year-over-year basis.
Increasing expenses on product development and debt financing for acquisitions amid stiff competition from peers, including Qorvo (QRVO - Free Report) , Skyworks (SWKS - Free Report) and Marvell (MRVL - Free Report) , in the semiconductor market are anticipated to have limited the fiscal fourth-quarter margins.
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Broadcom (AVGO) to Report Q4 Earnings: What's in the Offing?
Broadcom (AVGO - Free Report) is slated to report fourth-quarter fiscal 2020 results on Dec 10.
For fourth-quarter fiscal 2020, the company anticipates revenues of $6.4 billion (+/- $150 million). The Zacks Consensus Estimate is currently pegged at $6.42 billion, indicating an improvement of 11.1% from the year-ago quarter.
We note that the Zacks Consensus Estimate for earnings has been stable in the past 30 days at $6.24. The figure suggests growth of 15.8% from the prior-year reported figure.
Factors to Note
Broadcom’s fiscal fourth-quarter performance is likely to have benefited from momentum in the enterprise business and substantial customer base, which, in turn, is expected to have aided it in expanding presence in the infrastructure software space. This might have driven Infrastructure software revenues in the fiscal fourth quarter.
Moreover, synergies from the buyouts of Brocade, CA and Symantec’s enterprise security business are anticipated to have aided Broadcom’s fiscal fourth-quarter performance. Markedly, Symantec’s enterprise security business contributed more than $400 million to revenues in third-quarter fiscal 2020. Moreover, revenues from Brocade and CA improved 3% and 6%, respectively, on a year-over-year basis.
Broadcom Inc. Price and EPS Surprise
Broadcom Inc. price-eps-surprise | Broadcom Inc. Quote
Further, the coronavirus crisis-induced work-from-home trend is expected to have driven the adoption of cloud-based infrastructure software solutions, which is likely to get reflected in the to-be-reported quarter’s top line .
Notably, the Zacks Consensus Estimate for the Infrastructure Software segment revenues for the fiscal fourth quarter is pegged at $1.624 billion. In third-quarter fiscal 2020, Infrastructure software revenues improved 41% year over year to $1.602 billion.
Robust adoption of Wi-Fi 6 in next-generation access gateway, courtesy of solid demand from enterprises, telcos and other service providers, is expected to have contributed to growth in revenues across the broadband end market in the fiscal fourth quarter.
Besides, Broadcom, currently carrying a Zacks Rank #3 (Hold), may have benefited from solid momentum across server storage connectivity, and the robust adoption of data protection controllers from enterprise customers. This is expected to have bolstered growth in the quarter under review.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Further, a solid uptick of DSL and PON and next-generation cable DOCSIS 3.1 products, and the latest enterprise and residential suite of Wi-Fi 6E-compliant solutions is expected to have benefited the top-line performance in the fiscal fourth quarter.
Also, incremental adoption of SmartNIC adapters, which enable cloud players to accelerate dynamic workloads in a cost-effective manner in a secure infrastructure, is also anticipated to have contributed to Semiconductor solutions’ revenues in the fiscal fourth quarter.
However, growth might have been limited by a sharp decline in video, particularly in satellite set-top boxes, amid the coronavirus pandemic-led constraints on live sporting events. Further, increasing lead times, is an overhang.
Notably, the Zacks Consensus Estimate for the Semiconductor solutions segment’s revenues for the fiscal fourth quarter is pegged at $4.783 billion. In third-quarter fiscal 2020, Semiconductor solutions’ revenues totaled $4.219 billion, down 4% on a year-over-year basis.
Increasing expenses on product development and debt financing for acquisitions amid stiff competition from peers, including Qorvo (QRVO - Free Report) , Skyworks (SWKS - Free Report) and Marvell (MRVL - Free Report) , in the semiconductor market are anticipated to have limited the fiscal fourth-quarter margins.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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