Broadcom Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Broadcom Corp (NASDAQ:BRCM) will unveil its latest earnings on Tuesday, January 31, 2012. Broadcom manufactures semiconductors for wired and wireless communications.

Broadcom Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 40 cents per share, a decline of 31% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 36 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 40 cents during the last month. For the year, analysts are projecting profit of $1.59 per share, a decline of 23.9% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 6 cents, coming in at net income of 48 cents per share versus a mean estimate of profit of 54 cents per share. In the second quarter, the company beat estimates by 10 cents.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 7.7% in revenue from the year-earlier quarter to $1.8 billion.

Analyst Ratings: Analysts are bullish on this stock with 27 analysts rating it as a buy, one rating it as a sell and four rating it as a hold.

A Look Back: In the third quarter, profit fell 17.5% to $270 million (48 cents a share) from $327.1 million (60 cents a share) the year earlier, missing analyst expectations. Revenue rose 8.4% to $1.96 billion from $1.81 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 11.9% in the second quarter from the year earlier, climbed 24.2% in the first quarter from the year-ago quarter and 44.9% in the fourth quarter of the last fiscal year.

The company has seen net income fall in each of the last two quarters. Net income dropped 37.1% in the second quarter.

Competitors to Watch: QUALCOMM, Inc. (NASDAQ:QCOM), Texas Instruments Inc. (NYSE:TXN), Analog Devices, Inc. (NYSE:ADI), NVIDIA Corporation (NASDAQ:NVDA), Marvell Tech. Group Ltd. (NASDAQ:MRVL), Intel Corporation (NASDAQ:INTC), Entropic Communications, Inc. (NASDAQ:ENTR), PMC-Sierra, Inc. (NASDAQ:PMCS)  and Zoran Corporation (NASDAQ:ZRAN).

Stock Price Performance: During November 25, 2011 to January 25, 2012, the stock price had risen $6.30 (21.4%) from $29.49 to $35.79. The stock price saw one of its best stretches over the last year between September 12, 2011 and September 20, 2011 when shares rose for seven-straight days, rising 8.3% (+$2.74) over that span. It saw one of its worst periods between February 4, 2011 and February 23, 2011 when shares fell for 13-straight days, falling 12.3% (-$5.56) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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