To The Moon

$Broadcom(AVGO)$ is expected to release earnings on 07 Mar 2024 after the market closes (AMC).

The consensus Q1 revenue estimate for Broadcom is around $11.7 billion, up 31% year over year. One of the analysts surveyed by LSEG thinks that the company will report revenue as high as $12.6 billion.

The average estimate for Q1 adjusted earnings per share (EPS) is $10.4. This number is a little lower than Broadcom's adjusted EPS from the prior-year period. But there have been a wide range of adjusted earnings estimates with only $9.02 on the low end and $11.50 on the high end.

Technical is showing an uptrend which I believe Broadcom would show more upside in its upcoming earnings. There is something to watch as Broadcom have make a significant stock price surge before its earnings, and whether will it go higher would depend on how the WatchTower platform outlook and guidance would be like.

WatchTower Platform

Broadcom announced the availability of the WatchTower Platform™, an innovative, open observability solution that improves business performance by streamlining identification and resolution of high-priority incidents in the mainframe environment.

Broadcom Earnings Dates, Upcoming and Historical

AVGO last reported earnings on 07 Dec 2023 after the market close (AMC). AVGO shares gained +2.4% the day following the earnings announcement to close at 939.98. Following its earnings release, 89 days ago, AVGO stock has drifted +42.9% higher.

From the time it announced earnings, AVGO traded in a range between 951.71 and 1438.17. The last price (1342.75) is closer to the higher end of range.

Estimated implied straddle for upcoming earning is 7.9%. If Broadcom would be able to provide a wide revenue earnings, there might be a chance that we will see a 3-5% upside move in its stock price.

Broadcom (AVGO) Moving Averages

Broadcom’s (AVGO) 10-Day exponential moving average is 1321.14, while Broadcom’s (AVGO) share price is $1,342.75, making it a Buy.

Broadcom’s (AVGO) 100-Day exponential moving average is 1100.78, while Broadcom’s (AVGO) share price is $1,342.75, making it a Buy.

Broadcom’s (AVGO) stock price is $1,342.75 and Broadcom’s (AVGO) 50-day simple moving average is 1198.12, creating a Buy signal.

Broadcom’s (AVGO) stock price is $1,342.75 and Broadcom’s (AVGO) 100-day simple moving average is 1064.95, creating a Buy signal.

Broadcom’s (AVGO) stock price is $1,342.75 and Broadcom’s (AVGO) 200-day simple moving average is 950.07, creating a Buy signal.

Broadcom (AVGO) Post Earnings Movement

The options market overestimated AVGO stocks earnings move 67% of the time in the last 12 quarters. The predicted move after earnings announcement was ±4.0% on average vs an average of the actual earnings moves of 3.3% (in absolute terms).

The option valuation is showing overvalued, but the range is pretty close at around 0.7%, this suggest price volatility, but we could see an upside if the EPS come in better-than-expected.

Summary

Broadcom have been trading pretty much higher in recent weeks, this is despite some slowdown in peers stocks, this earning result would be important as this would show whether Broadcom have the potential to go higher.

Appreciate if you could share your thoughts in the comment section whether you think Broadcom would be able to provide a better-than-expected EPS.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.