Inside Broadcom’s Upcoming Second Quarter Earnings Release
S&P 500 (NYSE:SPY) component Broadcom Corp (NASDAQ:BRCM) will unveil its latest earnings on Monday, July 25, 2011. Broadcom Corporation 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 23.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 40 cents during the last month. For the year, analysts are projecting profit of $1.83 per share, a decline of 12.4% from last year.
Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of 40 cents per share versus a mean estimate of 35 cents. Two quarters ago, it reported profit of 58 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $1.81 billion in revenue this quarter, a rise of 13.1% from the year ago quarter. Analysts are forecasting total revenue of $7.57 billion for the year, a rise of 11% from last year’s revenue of $6.82 billion.
Analyst Ratings: Analysts are bullish on this stock with 24 analysts rating it as a buy, two rating it as a sell and six rating it as a hold.
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 41.8%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 54.3% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 8.5% while it rose 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 April 21, 2011 to July 22, 2011, the stock price had fallen $4.82 (-12%) from $40.29 to $35.47. The stock price saw one of its best stretches over the last year between August 31, 2010 and September 9, 2010 when shares rose for seven-straight days, rising 13.3% (+$3.97) 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% (-$5.59) over that span. Shares are down $8.08 (-18.55%) year to date.
(Source: Xignite Financials)
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