Broadcom
AVGO
is set to report second-quarter fiscal 2022 results on Jun 3.
For the quarter, the Zacks Consensus Estimate for earnings has remained steady at $6.44 per share over the past 30 days and indicates 25.3% growth from the figure reported in the year-ago quarter.
Moreover, Broadcom expects fiscal second-quarter revenues of $6.5 billion. The consensus mark for revenues currently stands at $6.51 billion, suggesting growth of 13.3% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 1.4%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Robust adoption of Wi-Fi 6 in next-generation access gateway, courtesy of solid demand from enterprises, telcos and other service providers, is expected to have contributed to revenue growth across the broadband end market in the fiscal second quarter.
Moreover, demand for cable DOCSIS 3.1 products bodes well. Acceleration in 5G deployment, production ramp up and increase in radio frequency content are expected to have driven top-line growth.
Further, the latest enterprise and residential suite of Wi-Fi 6E-compliant solutions is expected to have benefited this Zacks Rank #3 (Hold) company’s fiscal second-quarter results. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Also, incremental adoption of SmartNIC adapters, which enable cloud players to accelerate dynamic workloads in a cost-effective manner in a secure infrastructure, is anticipated to have contributed to Semiconductor solutions’ revenues in the quarter under review.
Notably, the Zacks Consensus Estimate for the Semiconductor solutions segment’s revenues for the fiscal second quarter is pegged at $4.71 billion, suggesting growth of 16.9% on a year-over-year basis.
Additionally, Broadcom’s fiscal second-quarter performance is likely to reflect synergies from the buyouts of CA and Symantec’s enterprise security business. This is anticipated to have aided Broadcom’s Infrastructure software revenues.
Further, the coronavirus crisis-induced work-from-home trend may have favored the adoption of cloud-based infrastructure software solutions, which is likely to get reflected in the to-be-reported quarter’s top line.
Notably, the Zacks Consensus Estimate for the Infrastructure Software segment revenues for the fiscal second quarter is pegged at $1.79 billion, indicating year-over-year growth of 4.3%.
Key Developments in Q2
During the to-be-reported quarter, Broadcom announced its collaboration with
Alphabet
’s
GOOGL
Google Cloud to migrate its core software solutions to the latter’s cloud environment.
What Our Model Says
According to the Zacks model, the combination of a positive
Earnings ESP
and Zacks Rank #1, 2 (Buy) or 3 increases the odds of an earnings beat. But that is not the case here.
Broadcom has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Stocks to Consider
Here are a couple of companies you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Zoom
ZM
has an Earnings ESP of +0.93% and a Zacks Rank #2.
Digital Turbine
APPS
has an Earnings ESP of +6.98% and a Zacks Rank #2.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report