Broadcom Earnings Preview: Analysts Predict EPS to Remain Steady Over Last Quarter

Broadcom BRCM unveils its next round of earnings this Monday, July 25, 2011. Get prepared with Benzinga's ultimate guide to the company's second quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 40 cents per share and revenues of $1.81 billion. We'll have to wait for Monday to see if Broadcom reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$0.35	$0.58	$0.56	$0.45
EPS Actual	$0.40	$0.58	$0.60	$0.52

Stock Performance:

At last check, shares of Broadcom were trading at $34.68. Since January 1st, shares of Broadcom have declined 20%. For a full 12 months, the return has declined by 5%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Broadcom is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Broadcom's peers in that sector.

• Analog Devices ADI: Moderate Buy with a $0.75 recent quarter EPS
• Intel INTC: Moderate Buy with a $0.56 recent quarter EPS
• Marvell Technology Group MRVL: Moderate Buy with a $0.24 recent quarter EPS

Broadcom is in the semiconductors-communications industry, which has experienced price/earnings growth of 1.9%.

Finally, a description of the company's main areas of operation: Broadcom manufactures semiconductors for wired and wireless communications.

Take Action:

Now that you've gotten an advanced peak at Broadcom's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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