Inside Broadcom’s Upcoming Quarterly Earnings Release

S&P 500 (NYSE:SPY) component Broadcom Corp (NASDAQ:BRCM) will unveil its latest earnings on Tuesday, October 25, 2011. 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 53 cents per share, a decline of 11.7% 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 49 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 53 cents during the last month. Analysts are projecting profit to rise by 13.9% versus last year to $1.80.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 50 cents per share against a mean estimate of net income of 40 cents, and the quarter before, the company exceeded forecasts by 5 cents with profit of 40 cents versus a mean estimate of net income of 35 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.7% in revenue from the year-earlier quarter to $1.95 billion.

Analyst Ratings: Analysts are bullish on this stock with 25 analysts rating it as a buy, one rating it as a sell and seven rating it as a hold.

A Look Back: In the second quarter, profit fell 37.1% to $175 million (31 cents a share) from $278.3 million (52 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 11.9% to $1.8 billion from $1.6 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 31.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 44.9% from the year earlier quarter.

The decrease in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 8.5% in the first quarter, more than fourfold in the fourth quarter of the last fiscal year and more than threefold in the third quarter of the last fiscal year.

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), Infineon Tech. AG (IFNNY), and Zoran Corporation (NASDAQ:ZRAN).

Stock Price Performance: During August 23, 2011 to October 19, 2011, the stock price had risen $4.24 (12.8%) from $33.18 to $37.42. 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% (+$2.75) 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% (-$5.58) over that span. Shares are down $5.80 (-13.4%) year to date.

(Source: Xignite Financials)

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