Broadcom Earnings: Here’s Why Investors are Happy Now
Broadcom Corp. (NASDAQ:BRCM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.22%.
Broadcom Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.65 in the quarter as EPS of $0.65 in the year-earlier quarter.
Revenue: Rose 9.74% to $2.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Broadcom Corp. reported adjusted EPS income of $0.65 per share. By that measure, the company beat the mean analyst estimate of $0.56. It beat the average revenue estimate of $1.91 billion.
Quoting Management: “Broadcom delivered nearly 10% year-over-year revenue growth in the March quarter, and earnings well above First Call consensus. This better-than-expected result was driven by wireless baseband and connectivity chips,” said Scott McGregor, Broadcom’s President and Chief Executive Officer. “Looking forward, we see broad-based sequential growth driven by our industry-leading portfolio of wired and wireless communications platforms.”
Key Stats (on next page)…
Revenue decreased 3.61% from $2.08 billion in the previous quarter. EPS decreased 14.47% from $0.76 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.72 to a profit $0.66. For the current year, the average estimate has moved down from a profit of $2.97 to a profit of $2.77 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)