Earnings and Growth Analysis : Broadcom (NASDAQ:AVGO)

Earnings results for Broadcom (NASDAQ:AVGO)

Broadcom Inc. is expected* to report earnings on 06/03/2021 after market close. The report will be for the fiscal Quarter ending Apr 2021. According to Zacks Investment Research, based on 4 analysts’ forecasts, the consensus EPS forecast for the quarter is $5.43. The reported EPS for the same quarter last year was $4.16.

Broadcom last announced its earnings results on March 3rd, 2021. The semiconductor manufacturer reported $6.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.56 by $0.05. The business had revenue of $6.66 billion for the quarter, compared to analysts’ expectations of $6.61 billion. Its revenue for the quarter was up 13.6% compared to the same quarter last year. Broadcom has generated $18.45 earnings per share over the last year and currently has a price-to-earnings ratio of 55.1. Broadcom has confirmed that its next quarterly earnings report will be published on Thursday, June 3rd, 2021.

Analyst Opinion on Broadcom (NASDAQ:AVGO)

25 Wall Street analysts have issued ratings and price targets for Broadcom in the last 12 months. Their average twelve-month price target is $475.36, predicting that the stock has a possible upside of 0.34%. The high price target for AVGO is $580.00 and the low price target for AVGO is $360.00. There are currently 5 hold ratings and 20 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Broadcom has received a consensus rating of Buy. The company’s average rating score is 2.80, and is based on 20 buy ratings, 5 hold ratings, and no sell ratings. According to analysts’ consensus price target of $475.36, Broadcom has a forecasted upside of 0.3% from its current price of $473.73. Broadcom has been the subject of 11 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Broadcom (NASDAQ:AVGO)

Broadcom pays a meaningful dividend of 3.07%, higher than the bottom 25% of all stocks that pay dividends. Broadcom has been increasing its dividend for 10 years. The dividend payout ratio of Broadcom is 78.05%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on earnings estimates, Broadcom will have a dividend payout ratio of 56.18% next year. This indicates that Broadcom will be able to sustain or increase its dividend.

Insiders buying/selling: Broadcom (NASDAQ:AVGO)

In the past three months, Broadcom insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $13,225,300.00 in company stock. Only 2.40% of the stock of Broadcom is held by insiders. 81.51% of the stock of Broadcom is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Broadcom (NASDAQ:AVGO

Earnings for Broadcom are expected to grow by 9.39% in the coming year, from $23.43 to $25.63 per share. The P/E ratio of Broadcom is 55.08, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 30.11. The P/E ratio of Broadcom is 55.08, which means that it is trading at a more expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 48.07. Broadcom has a PEG Ratio of 0.91. PEG Ratios below 1 indicate that a company could be undervalued. Broadcom has a P/B Ratio of 8.07. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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