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Broadcom Q3 Preview: Can the Earnings Streak Continue?
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The Zacks Computer and Technology Sector has been hit harder than most in 2022, down more than 25% and vastly underperforming the S&P 500. Over the last month, it’s continued to lag the general market.
Image Source: Zacks Investment Research
A widely-recognized company in the sector, Broadcom (AVGO - Free Report) , is slated to unveil Q3 earnings on Thursday, September 1st, after market close.
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices focusing on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
Currently, Broadcom carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Let’s take a closer look at how the company stands heading into the print.
Share Performance & Valuation
As with most tech-related stocks in 2022, Broadcom shares have struggled to find buyers, declining nearly 25% in value.
Image Source: Zacks Investment Research
The adverse price action has continued over the last month, with AVGO shares losing 6% in value and widely underperforming the S&P 500.
Image Source: Zacks Investment Research
However, the company’s shares trade at solid valuation levels – AVGO’s 15.1X forward earnings multiple resides well beneath its five-year median of 16.8X and represents an enticing 34% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Surprisingly, analysts have been quiet for the quarter to be reported, with zero earnings estimate revisions coming in. Still, the Zacks Consensus EPS Estimate of $9.62 reflects a stellar 40% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
AVGO’s top-line is also in exceptional health – the Zacks Consensus Sales Estimate of $8.4 billion pencils in a substantial 24% uptick compared to year-ago quarterly sales of $6.8 billion.
Quarterly Performance & Market Reactions
Broadcom has been on a jaw-dropping earnings streak – the company hasn’t reported quarterly EPS under the Zacks Consensus EPS Estimate dating all the way back to 2012. Just in its latest print, AVGO recorded a 4% bottom-line beat.
Top-line results have also been rock-solid – Broadcom has chained together nine consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, day-traders who prefer to play the long side will appreciate this – following each of AVGO’s last five quarterly reports, shares have moved upwards following the report in each instance.
Putting Everything Together
Broadcom shares have lagged the general market YTD and over the last month, with sellers remaining in control.
Further, the company’s shares trade at solid valuation levels, with its forward P/E ratio sitting nicely beneath its five-year median and Zacks Sector average.
Analysts have been silent over the last 60 days, but estimates reflect substantial Y/Y increases in both revenue and earnings.
Broadcom has had zero issues exceeding quarterly estimates, and the market has reacted well in response following prints as of late.
Heading into the earnings release, Broadcom (AVGO - Free Report) carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
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Broadcom Q3 Preview: Can the Earnings Streak Continue?
The Zacks Computer and Technology Sector has been hit harder than most in 2022, down more than 25% and vastly underperforming the S&P 500. Over the last month, it’s continued to lag the general market.
Image Source: Zacks Investment Research
A widely-recognized company in the sector, Broadcom (AVGO - Free Report) , is slated to unveil Q3 earnings on Thursday, September 1st, after market close.
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices focusing on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
Currently, Broadcom carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Let’s take a closer look at how the company stands heading into the print.
Share Performance & Valuation
As with most tech-related stocks in 2022, Broadcom shares have struggled to find buyers, declining nearly 25% in value.
Image Source: Zacks Investment Research
The adverse price action has continued over the last month, with AVGO shares losing 6% in value and widely underperforming the S&P 500.
Image Source: Zacks Investment Research
However, the company’s shares trade at solid valuation levels – AVGO’s 15.1X forward earnings multiple resides well beneath its five-year median of 16.8X and represents an enticing 34% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
Surprisingly, analysts have been quiet for the quarter to be reported, with zero earnings estimate revisions coming in. Still, the Zacks Consensus EPS Estimate of $9.62 reflects a stellar 40% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
AVGO’s top-line is also in exceptional health – the Zacks Consensus Sales Estimate of $8.4 billion pencils in a substantial 24% uptick compared to year-ago quarterly sales of $6.8 billion.
Quarterly Performance & Market Reactions
Broadcom has been on a jaw-dropping earnings streak – the company hasn’t reported quarterly EPS under the Zacks Consensus EPS Estimate dating all the way back to 2012. Just in its latest print, AVGO recorded a 4% bottom-line beat.
Top-line results have also been rock-solid – Broadcom has chained together nine consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, day-traders who prefer to play the long side will appreciate this – following each of AVGO’s last five quarterly reports, shares have moved upwards following the report in each instance.
Putting Everything Together
Broadcom shares have lagged the general market YTD and over the last month, with sellers remaining in control.
Further, the company’s shares trade at solid valuation levels, with its forward P/E ratio sitting nicely beneath its five-year median and Zacks Sector average.
Analysts have been silent over the last 60 days, but estimates reflect substantial Y/Y increases in both revenue and earnings.
Broadcom has had zero issues exceeding quarterly estimates, and the market has reacted well in response following prints as of late.
Heading into the earnings release, Broadcom (AVGO - Free Report) carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.