Broadcom Ltd. (AVGO), the U.S. global supplier of analogue and digital semiconductors headquartered in Singapore, will release its financial results for the fourth quarter of fiscal 2017 on Dec. 6 after market close.
For the quarter, analysts forecast that Broadcom will generate EPS, a non-GAAP measure of income from ongoing operations, of $4.51 on average. Analysts’ estimates on earnings range between a low of $4.40 and a high of $4.61, as it is illustrated in the chart below:
Source: Yahoo Finance
For Broadcom, which is also a designer and developer of semiconductors, the average analyst forecasts a quarterly figure for revenue of $4.82 billion. As illustrated in the chart below, the average revenue is a mean of 25 estimates that range between a low of $4.71 billion and a high of $4.9 billion. The company operates in the wired infrastructure and wireless communication markets as well as in the enterprise storage and industrial markets.
Source: Yahoo Finance
With this estimate, the average analyst foresees a 16.30% increase in the company’s sales from the prior-year quarter. On Wednesday Broadcom will also provide shareholders with the annual figure for revenue.
Sales for full fiscal 2017 are forecasted at $17.64 billion, which is a 32.70% increase from full fiscal 2016.
The following two charts show the trend in Broadcom’s revenue over the last four quarters (chart A) and the last four years (chart B):
Chart A.
Chart B.
Concerning estimates for Broadcom’s sales for the full fiscal 2017 to full fiscal 2018 period and for the following five-year period, analysts forecast growth of 12.8% and of 20%. The latter rate is an annual average.
Broadcom is currently trading at $271.56 per share, with a market capitalization of $110.79 billion. The tech stock is up trending and has gained 54% so far this year:
The 52-week range is $162.40 to $285.68. Broadcom has a price-earnings (P/E) ratio of 242.46 versus an industry median of 22.64, a price-book (P/B) ratio of 5.59 versus an industry median of 2.02 and a price-sales (P/S) ratio of 7.01 versus an industry median of 1.79.
Analysts set an average price target of $293.93 and a recommendation rating of 1.7 out of a total of 5. The recommendation rating ranges between 1.0 (Strong Buy) and 5.0 (Sell).
The forward yield on annual dividend is 1.50%.
GuruFocus assigns Broadcom a financial strength rating of 6 out of 10 and a profitability & growth rating of 8 out of a total of 10.
Disclosure: I have no positions in Broadcom.
