Is It Time To Buy This Tech Company Ahead Of Earnings

Broadcom Limited (AVGO) Information Technology – Semiconductors | Reports June 2, After Market Closes

Key Takeaways

The Estimize consensus is calling for earnings per share of $2.43 on $3.56 billion in revenue, 5 cents higher than Wall Street on the bottom line and $15 million on the top

This is the first quarter that will reflect results after the Broadcom and Avago merger

The company’s continued efforts to innovate and offer new products should offset higher operating expenses from acquisitions

What are you expecting for AVGO? Get your estimate in here!

Broadcom Limited is scheduled to report second quarter results this Thursday, after the market closes. This quarter represents the first report from Broadcom after the takeover from Avago Technologies. After the merger on February 1, 2016, Broadcom Limited became the parent company of Avao and Broadcom. The deal certainly skews year over year revenue growth which is predicted to increase 117%. Regardless, AVGO is favorably positioned to deliver robust growth and a bump in the stock

The Estimize consensus is calling for earnings per share of $2.43 on $3.56 billion in revenue, 5 cents higher than Wall Street on the bottom line and $15 million on the top. Compared to a year earlier this reflects a 14% increase in earnings and 117% increase in revenue. Per share estimates have climbed 12% since its last report, reflecting positive sentiment towards the company. Additionally, share prices typically increase during earnings season. Through earnings, the stock , on average, rises 4% and continues to climb in the month following its report

Broadcom is best known as a semiconductor leader serving four primary markets; wired infrastructure, wireless communications, enterprise storage and the industrials sector. Applications for these products include, data center networking, broadband, telecommunications amongst other higher growth areas. Besides the recent merger, this quarter featured a handful of new products. They include ethernet switching and routing, standard products, physical layer copper and optical standard products offerings. Additionally, the company saw new offerings, both Broadcom and Avago, in its wireless segment. Still demand for these products have declined in North America and could impact wireless revenue.