Broadcom (NASDAQ:AVGO) is gearing up to announce its quarterly earnings on Thursday, 2025-09-04. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Broadcom will report an earnings per share (EPS) of $1.54.
Broadcom bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.01, leading to a 5.0% drop in the share price on the subsequent day.
Here's a look at Broadcom's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.57 | 1.49 | 1.38 | 1.20 |
| EPS Actual | 1.58 | 1.60 | 1.42 | 1.24 |
| Price Change % | -5.0% | 9.0% | 24.0% | -10.0% |
Tracking Broadcom's Stock Performance
Shares of Broadcom were trading at $298.24 as of September 02. Over the last 52-week period, shares are up 95.01%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Observations about Broadcom
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Broadcom.
With 26 analyst ratings, Broadcom has a consensus rating of Outperform. The average one-year price target is $310.54, indicating a potential 4.12% upside.
Understanding Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Advanced Micro Devices, Texas Instruments and Qualcomm, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Advanced Micro Devices, with an average 1-year price target of $177.23, suggesting a potential 40.57% downside.
- Analysts currently favor an Neutral trajectory for Texas Instruments, with an average 1-year price target of $222.3, suggesting a potential 25.46% downside.
- Analysts currently favor an Outperform trajectory for Qualcomm, with an average 1-year price target of $189.29, suggesting a potential 36.53% downside.
Snapshot: Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Advanced Micro Devices, Texas Instruments and Qualcomm, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Broadcom | Outperform | 20.16% | $10.20B | 7.12% |
| Advanced Micro Devices | Outperform | 31.71% | $3.06B | 1.48% |
| Texas Instruments | Neutral | 16.38% | $2.58B | 7.85% |
| Qualcomm | Outperform | 10.35% | $5.76B | 9.71% |
Key Takeaway:
Broadcom ranks highest in Gross Profit among its peers. It is in the middle for Revenue Growth. For Return on Equity, Broadcom is at the bottom compared to its peers.
Discovering Broadcom: A Closer Look
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.
Broadcom's Economic Impact: An Analysis
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Broadcom's remarkable performance in 3 months is evident. As of 30 April, 2025, the company achieved an impressive revenue growth rate of 20.16%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Broadcom's net margin is impressive, surpassing industry averages. With a net margin of 33.09%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.12%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Broadcom's ROA excels beyond industry benchmarks, reaching 3.01%. This signifies efficient management of assets and strong financial health.
Debt Management: Broadcom's debt-to-equity ratio surpasses industry norms, standing at 0.97. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Broadcom visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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