We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadcom (AVGO) to Report Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
Broadcom (AVGO - Free Report) is set to report second-quarter fiscal 2022 results on Jun 3.
For the quarter, the Zacks Consensus Estimate for earnings has remained steady at $6.44 per share over the past 30 days and indicates 25.3% growth from the figure reported in the year-ago quarter.
Moreover, Broadcom expects fiscal second-quarter revenues of $6.5 billion. The consensus mark for revenues currently stands at $6.51 billion, suggesting growth of 13.3% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 1.4%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
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 revenue growth across the broadband end market in the fiscal second quarter.
Moreover, demand for cable DOCSIS 3.1 products bodes well. Acceleration in 5G deployment, production ramp up and increase in radio frequency content are expected to have driven top-line growth.
Also, incremental adoption of SmartNIC adapters, which enable cloud players to accelerate dynamic workloads in a cost-effective manner in a secure infrastructure, is anticipated to have contributed to Semiconductor solutions’ revenues in the quarter under review.
Notably, the Zacks Consensus Estimate for the Semiconductor solutions segment’s revenues for the fiscal second quarter is pegged at $4.71 billion, suggesting growth of 16.9% on a year-over-year basis.
Additionally, Broadcom’s fiscal second-quarter performance is likely to reflect synergies from the buyouts of CA and Symantec’s enterprise security business. This is anticipated to have aided Broadcom’s Infrastructure software revenues.
Further, the coronavirus crisis-induced work-from-home trend may have favored 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 second quarter is pegged at $1.79 billion, indicating year-over-year growth of 4.3%.
Key Developments in Q2
During the to-be-reported quarter, Broadcom announced its collaboration with Alphabet’s (GOOGL - Free Report) Google Cloud to migrate its core software solutions to the latter’s cloud environment.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1, 2 (Buy) or 3 increases the odds of an earnings beat. But that is not the case here.
Broadcom has an Earnings ESP of 0.00% and a Zacks Rank #3. 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 couple of companies you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Zoom (ZM - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2.
Digital Turbine (APPS - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Image: Bigstock
Broadcom (AVGO) to Report Q2 Earnings: What's in the Cards?
Broadcom (AVGO - Free Report) is set to report second-quarter fiscal 2022 results on Jun 3.
For the quarter, the Zacks Consensus Estimate for earnings has remained steady at $6.44 per share over the past 30 days and indicates 25.3% growth from the figure reported in the year-ago quarter.
Moreover, Broadcom expects fiscal second-quarter revenues of $6.5 billion. The consensus mark for revenues currently stands at $6.51 billion, suggesting growth of 13.3% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 1.4%.
Broadcom Inc. Price and EPS Surprise
Broadcom Inc. price-eps-surprise | Broadcom Inc. Quote
Let’s see how things have shaped up for this announcement.
Factors to Consider
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 revenue growth across the broadband end market in the fiscal second quarter.
Moreover, demand for cable DOCSIS 3.1 products bodes well. Acceleration in 5G deployment, production ramp up and increase in radio frequency content are expected to have driven top-line growth.
Further, the latest enterprise and residential suite of Wi-Fi 6E-compliant solutions is expected to have benefited this Zacks Rank #3 (Hold) company’s fiscal second-quarter results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, incremental adoption of SmartNIC adapters, which enable cloud players to accelerate dynamic workloads in a cost-effective manner in a secure infrastructure, is anticipated to have contributed to Semiconductor solutions’ revenues in the quarter under review.
Notably, the Zacks Consensus Estimate for the Semiconductor solutions segment’s revenues for the fiscal second quarter is pegged at $4.71 billion, suggesting growth of 16.9% on a year-over-year basis.
Additionally, Broadcom’s fiscal second-quarter performance is likely to reflect synergies from the buyouts of CA and Symantec’s enterprise security business. This is anticipated to have aided Broadcom’s Infrastructure software revenues.
Further, the coronavirus crisis-induced work-from-home trend may have favored 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 second quarter is pegged at $1.79 billion, indicating year-over-year growth of 4.3%.
Key Developments in Q2
During the to-be-reported quarter, Broadcom announced its collaboration with Alphabet’s (GOOGL - Free Report) Google Cloud to migrate its core software solutions to the latter’s cloud environment.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1, 2 (Buy) or 3 increases the odds of an earnings beat. But that is not the case here.
Broadcom has an Earnings ESP of 0.00% and a Zacks Rank #3. 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 couple of companies you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Zoom (ZM - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2.
Digital Turbine (APPS - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank #2.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>