Broadcom slips ahead of results, due after the bell
AVGO•Broadcom slips ahead of quarterly results
- Shares of chipmaker Broadcom (AVGO.O) dipped about 0.5% on Wednesday, while analysts expect the company to report much higher revenue in quarterly results due after the closing bell.
- The company is expected to post fiscal Q3 revenue up 84% at $29.36 billion versus $15.95 billion a year ago and adjusted EPS of $3.24 versus $1.69 a year ago, per LSEG.
- However, Blayne Curtis, managing director, equity research, for semiconductors at Jefferies, said in a note ahead of the AVGO results: "We don't see much upside to the AI number for calendar 2027 versus expectations, and don't believe Broadcom will guide for 2028."
- AVGO has beaten analysts' earnings estimates in all of the past eight reporting periods, based on LSEG data.
- In June, Broadcom missed Wall Street expectations for Q2 revenue, and its top executive left a previous 2027 sales forecast unchanged.
- A Bloomberg report in August, citing people familiar with the matter, said Broadcom is in talks with a group of lenders to raise more than $60 billion in debt for an AI chip financing deal that will benefit Anthropic and other companies.
- Of 51 analysts covering the stock, 47 rate it "buy" or "strong buy" and four rate it "hold".
- The stock is more than 25% below its all-time intraday high of $495.00 reached on June 3.
- Year to date, AVGO has advanced about 6%, underperforming the Nasdaq's nearly 13% rise.
