FY2025 EPS Estimates for Broadcom Lowered by Zacks Research

Key Points

• Zacks Research has lowered its FY2025 earnings per share estimate for Broadcom to $5.39, down from $5.51, aligning closely with the current consensus estimate of $5.38.
• Broadcom recently reported a quarterly EPS of $1.69, exceeding analysts' expectations, and set a quarterly dividend of $0.59, with an annual yield of 0.7%.
• Multiple analysts have increased Broadcom's price targets significantly, with Bank of America and JPMorgan Chase raising their targets to $400, reflecting positive sentiment among investment firms.

Broadcom Inc. (NASDAQ:AVGO - Free Report) - Zacks Research dropped their FY2025 earnings estimates for Broadcom in a research report issued to clients and investors on Tuesday, September 23rd. Zacks Research analyst Team now expects that the semiconductor manufacturer will post earnings of $5.39 per share for the year, down from their prior estimate of $5.51. The consensus estimate for Broadcom's current full-year earnings is $5.38 per share. Zacks Research also issued estimates for Broadcom's Q4 2025 earnings at $1.48 EPS, Q1 2026 earnings at $1.53 EPS, Q2 2026 earnings at $1.53 EPS, Q3 2026 earnings at $1.67 EPS, Q4 2026 earnings at $1.81 EPS, FY2026 earnings at $6.54 EPS, Q1 2027 earnings at $1.65 EPS, Q2 2027 earnings at $1.67 EPS, Q3 2027 earnings at $1.75 EPS and FY2027 earnings at $6.81 EPS.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.66 by $0.03. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The business had revenue of $15.95 billion for the quarter, compared to the consensus estimate of $15.82 billion. During the same quarter in the prior year, the business posted $1.24 earnings per share. The firm's quarterly revenue was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS.

A number of other research analysts also recently commented on AVGO. Benchmark boosted their price target on Broadcom from $315.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, September 5th. TD Cowen raised their target price on shares of Broadcom from $355.00 to $370.00 and gave the company a "buy" rating in a report on Friday, September 5th. Bank of America boosted their target price on shares of Broadcom from $300.00 to $400.00 and gave the company a "buy" rating in a research report on Friday, September 5th. Cowen reaffirmed a "buy" rating on shares of Broadcom in a report on Friday, June 6th. Finally, JPMorgan Chase & Co. increased their price target on shares of Broadcom from $325.00 to $400.00 and gave the stock an "overweight" rating in a research report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $356.48.

Broadcom Stock Performance

NASDAQ:AVGO opened at $336.10 on Friday. The company has a market cap of $1.59 trillion, a price-to-earnings ratio of 85.74, a PEG ratio of 1.88 and a beta of 1.16. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $374.23. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The stock has a fifty day moving average price of $312.64 and a 200-day moving average price of $251.49.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be given a $0.59 dividend. The ex-dividend date is Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio (DPR) is currently 60.20%.

Insider Transactions at Broadcom

In related news, CEO Hock E. Tan sold 100,000 shares of the firm's stock in a transaction on Tuesday, September 23rd. The stock was sold at an average price of $339.58, for a total transaction of $33,958,000.00. Following the sale, the chief executive officer owned 725,638 shares of the company's stock, valued at $246,412,152.04. This trade represents a 12.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Justine Page sold 800 shares of the business's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $360.00, for a total value of $288,000.00. Following the sale, the director owned 22,982 shares in the company, valued at $8,273,520. This represents a 3.36% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have acquired 3,550 shares of company stock valued at $1,227,869 and have sold 297,274 shares valued at $101,002,814. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

Large investors have recently bought and sold shares of the company. Barnes Dennig Private Wealth Management LLC acquired a new stake in Broadcom during the 1st quarter worth approximately $25,000. Cheviot Value Management LLC bought a new position in shares of Broadcom during the first quarter valued at $25,000. Inlight Wealth Management LLC bought a new position in shares of Broadcom during the first quarter valued at $26,000. Sawyer & Company Inc lifted its holdings in shares of Broadcom by 62.1% during the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 36 shares during the period. Finally, Longfellow Investment Management Co. LLC bought a new stake in shares of Broadcom in the second quarter worth $27,000. 76.43% of the stock is currently owned by institutional investors.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.

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