Earnings to Watch: Broadcom (AVGO Stock) Poised for Strong Q4 Results Tomorrow

Broadcom (NASDAQ: AVGO), the fabless chip and software company, is set to announce its Q4 earnings tomorrow afternoon. If you’re looking to get a glimpse into what’s happening at the company, here’s what you should keep an eye on.

Last quarter, Broadcom AVGO Stock managed to meet analysts’ expectations for revenue, posting an impressive $14.05 billion—up 51.2% year-over-year. It was a solid performance overall, with a noticeable improvement in inventory levels. This time around, analysts are expecting the company’s revenue to grow by 22.2%, reaching $14.61 billion. While that’s a slower pace compared to the 34.2% growth Broadcom saw during the same quarter last year, it still signals strong momentum. On the earnings front, adjusted profits are anticipated to come in at $1.51 per share.

Over the last 30 days, analysts have mostly stuck with their projections, indicating they’re confident in Broadcom’s ability to stay on track as it heads into earnings. Over the past two years, Broadcom has missed revenue expectations just once, and it has beaten analysts’ top-line estimates by an average of 0.7%.

To get a sense of where Broadcom stands relative to its peers in the chip industry, let’s take a look at some recent earnings reports from other companies in the processor and graphics chip segment. Qualcomm recently posted a 17.5% year-over-year revenue increase, beating expectations by 6.7%. Meanwhile, Intel saw a decline of 7.4%, although it managed to beat analyst estimates by 3.3%. Despite these results, both stocks took a hit—Qualcomm fell 3.8%, and Intel dropped 3.3%.

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It’s been a generally positive year for stocks in 2024. The Federal Reserve tamed inflation without tipping the economy into a recession (the so-called “soft landing”), and now the Fed is cutting interest rates. On top of that, the upcoming November 2024 election has stirred investor optimism, particularly with the possibility of Donald Trump’s return. These factors have driven markets higher, though the processors and graphics chips sector has lagged behind, with stocks in the space down an average of 7.2% over the past month. Broadcom AVGO Stock has been hit harder, dropping 14.2% during the same period. Despite this, analysts are still optimistic, with a target price of $246.58—well above the current share price of $190.70.

At StockStory, we get the appeal of thematic investing. From tech giants like Microsoft (MSFT) and Alphabet (GOOG) to consumer staples like Coca-Cola (KO) and Monster Beverage (MNST), identifying companies poised to benefit from broader trends is an exciting way to invest. But with Broadcom, as always, it’s essential to focus on the fundamentals as we look ahead to tomorrow’s earnings.

What is AVGO stock

AVGO stock refers to the shares of Broadcom Inc. (NASDAQ: AVGO), a leading global semiconductor and software company. Broadcom designs, develops, and supplies a wide range of products, including chips used in networking, broadband, data centers, wireless communications, and more. With a strong portfolio and significant market share in various sectors, Broadcom has established itself as a key player in the tech industry. The company is known for its steady revenue growth, strategic acquisitions, and strong financial performance, making AVGO stock attractive to long-term investors. It’s also recognized for consistent dividend payouts and a solid market position.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as financial advice. The author and StockStory do not guarantee the accuracy or completeness of the information presented. Investing in stocks involves risks, and you should do your own research or consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.

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