Everything you need to know before you earn

Fabless chip and software maker Broadcom ( NASDAQ:AVGO ) will report earnings after the bell tomorrow. Here’s what you need to know.

Broadcom beat analysts’ revenue expectations by 2.1% last quarter, reporting revenue of $11.96 billion, up 34.2% year-over-year. It was a mixed quarter for the company, with significant improvement in inventory levels but falling short of analyst EPS estimates.

Does the purchase or sale of Broadcom affect earnings? Read our full analysis here, it’s free.

Analysts expect Broadcom’s revenue to grow 37.5% year-over-year to $12.01 billion this quarter, an improvement over the 7.8% growth reported in the same quarter last year. Adjusted earnings per share are expected to be $10.84.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Broadcom has a history of beating Wall Street expectations, beating revenue estimates over the past two years by an average of 0.8% each time.

Looking at Broadcom’s competitors in the CPU and GPU space, some have already reported first-quarter results, which gives us a hint of what to expect. Nvidia saw year-over-year revenue growth of 262%, beating analyst expectations by 6.1%, and Qorvo saw revenue growth of 48.7%, beating estimates by 1.6%. After the results, Nvidia lost 9.4% and Qorvo fell 14.4%.

Read our full analysis of Nvidia’s results here and Qorvo’s results here.

There is positive sentiment among investors in the CPU and GPU segment, with share prices up an average of 4.7% over the past month. Broadcom is up 7.8% over the same period and is heading to earnings, with an average analyst price target of $1,536.2 (versus the current share price of $1,442.5).

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