The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Broadcom met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Gross margins increased, operating margins shrank, net margins dropped.
Broadcom chalked up revenue of $2.08 billion. The 38 analysts polled by S&P Capital IQ expected revenue of $2.06 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $1.77 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.76. The 39 earnings estimates compiled by S&P Capital IQ anticipated $0.74 per share. GAAP EPS of $0.43 for Q4 were 6.5% lower than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.7%, 100 basis points better than the prior-year quarter. Operating margin was 12.6%, 220 basis points worse than the prior-year quarter. Net margin was 12.1%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $8.58 billion. The average EPS estimate is $2.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 972 members out of 1,049 rating the stock outperform, and 77 members rating it underperform. Among 226 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 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 $40.59.
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