Factors Setting The Tone For Broadcom (AVGO) In Q4 Earnings
Zacks Investment Research | Dec 03, 2018 05:38AM ET
Broadcom Limited (NASDAQ:AVGO) is slated to release fourth-quarter fiscal 2018 results on Dec 6.
Notably, the company surpassed the Zacks Consensus Estimate in the trailing four quarters with average positive surprise of 2.25%.
In the last reported quarter, the company reported earnings of $4.98 per share, outpacing the Zacks Consensus Estimate by 15 cents. The figure improved 21.5% from the year-ago quarter and 2% sequentially.
Non-GAAP revenues from continuing operations were $5.066 billion, up 13.4% from the year-ago quarter and 0.9% sequentially. GAAP revenues came in at $5.063 billion. The figure was almost in line with management’s guidance and the Zacks Consensus Estimate of $5.060 billion.
Guidance & Estimates
For fourth-quarter fiscal 2018, Broadcom forecasts non-GAAP revenues of almost $5.4 billion (+/- $75 million). The Zacks Consensus Estimate is pegged at $5.41 billion.
The Zacks Consensus Estimate for earnings is pegged at $5.52 per share, up 20.3% year over year.
The company anticipates double digit year-on-year growth in networking and compute offloading driven by robust demand from cloud and traditional enterprise. However, cyclical headwinds in video access are expected to negatively impact Wired Infrastructure revenues.
The company expects strong demand from large North American OEM customers to drive Wireless Communications more than 25% sequentially.
However, the launch of next generation WiFi products is expected to be a catalyst for the segment.
Management stated that Enterprise Storage segment will benefit from robust demand from enterprise, cloud storage, datacenters and recovery in HDD demand.
Broadcom expects double digit year-on-year growth in industrial resale. Moreover, strong demand environment for industrial product revenues are likely to grow, which in turn will propel segmental revenues in the fourth quarter.
Notably, the stock has fallen 9.9% in a year’s time, compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.