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Broadcom Earnings Are on Deck

Friday - 7/19/2013, 2:00am  ET

Broadcom is expected to report Q2 earnings on July 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Broadcom's revenues will expand 6.9% and EPS will shrink -4.2%.

The average estimate for revenue is $2.11 billion. On the bottom line, the average EPS estimate is $0.69.

Revenue details
Last quarter, Broadcom logged revenue of $2.01 billion. GAAP reported sales were 11% higher than the prior-year quarter's $1.78 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.65. GAAP EPS of $0.33 for Q1 were 120% higher than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 49.7%, 20 basis points better than the prior-year quarter. Operating margin was 8.5%, 80 basis points better than the prior-year quarter. Net margin was 9.7%, 470 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.62 billion. The average EPS estimate is $2.89.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 955 members out of 1,037 rating the stock outperform, and 82 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 202 give Broadcom a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Broadcom is outperform, with an average price target of $40.40.

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This article was originally published as Broadcom Earnings Are on Deckon Fool.com

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