Broadcom Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
Broadcom (NASDAQ: BRCM) announces its next round of earnings this Tuesday, October 25, 2011. Here's Benzinga's advanced look at Broadcom's third quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of 53 cents/share and revenues of $1.95 billion. Broadcom's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 60 cents/share on revenues of $1.81 billion. We'll have to wait for Tuesday to see if Broadcom reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.40 | $0.35 | $0.58 | $0.56 |
| EPS Actual | $0.50 | $0.40 | $0.58 | $0.60 |
Stock Performance:
As of October 19, 2011, Broadcom's current share price was $37.42. Shares are down 13.4% year to date. For a full 12 months, the return has declined by 9.1%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts for Broadcom is a Moderate Buy. Over the past three months this rating's strength has declined slightly.
Competitors:
Wondering how some of the other information technology companies are doing? Here are a few of Broadcom's peers in that sector.
- Analog Devices (NYSE: ADI): Moderate Buy with a $0.71 recent quarter EPS
- Entropic Communications (NASDAQ: ENTR): Hold with a $0.09 recent quarter EPS
- Intel (NASDAQ: INTC): Moderate Buy with a $0.65 recent quarter EPS
- Marvell Technology Group (NASDAQ: MRVL): Moderate Buy with a $0.33 recent quarter EPS
The semiconductors-communications company's industry has seen price/earnings growth of 0.9% during the current fiscal year.
Finally, a description of the company's main areas of operation: Broadcom manufactures semiconductors for wired and wireless communications.
Take Action:
That's your advanced look at Broadcom's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.
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