Broadcom Beats on Both Top and Bottom Lines
Broadcom (NAS: BRCM) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Broadcom beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue improved slightly, while GAAP earnings per share shrank significantly.
Gross margin grew, operating margin shrank, and net margin dropped.
Broadcom booked revenue of $1.83 billion. The 36 analysts polled by S&P Capital IQ anticipated sales of $1.78 billion on the same basis. GAAP-reported sales were 3.6% higher than the prior-year quarter's $1.76 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 $0.65. The 31 earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. GAAP EPS of $0.15 for Q1 were 65% lower than the prior-year quarter's $0.43 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 49.8%, 30 basis points better than the prior-year quarter. Operating margin was 9.1%, 170 basis points worse than the prior-year quarter. Net margin was 4.8%, 810 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.92 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $7.97 billion. The average EPS estimate is $2.84.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 917 members rating the stock outperform and 76 members rating it underperform. Among 235 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 218 give Broadcom a green thumbs-up, and 17 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 $42.28.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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