Zacks Research Issues Negative Outlook for Broadcom Earnings

Broadcom Inc. (NASDAQ:AVGO) – Analysts at Zacks Research lowered their FY2025 earnings per share (EPS) estimates for shares of Broadcom in a research report issued to clients and investors on Tuesday, September 23rd. Zacks Research analyst Team now anticipates that the semiconductor manufacturer will post earnings of $5.39 per share for the year, down from their prior forecast 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) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The business had revenue of $15.95 billion during the quarter, compared to analyst estimates of $15.82 billion. During the same period in the previous year, the business earned $1.24 EPS. The company’s quarterly revenue was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS.

Several other research firms also recently commented on AVGO. JPMorgan Chase & Co. increased their price objective on shares of Broadcom from $325.00 to $400.00 and gave the company an “overweight” rating in a report on Friday, September 5th. Evercore ISI reissued an “outperform” rating and issued a $342.00 price objective (up from $304.00) on shares of Broadcom in a research report on Thursday, September 4th. Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a research report on Saturday, September 6th. Piper Sandler raised their target price on shares of Broadcom from $315.00 to $375.00 and gave the company an “overweight” rating in a research note on Friday, September 5th. Finally, Benchmark lifted their price objective on shares of Broadcom from $315.00 to $385.00 and gave the stock a “buy” rating in a research note on Friday, September 5th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $356.48.

Broadcom Trading Down 0.5%

Shares of Broadcom stock opened at $334.53 on Friday. The company has a market capitalization of $1.58 trillion, a P/E ratio of 85.34, a P/E/G ratio of 1.86 and a beta of 1.16. 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 company has a fifty day moving average of $313.66 and a 200 day moving average of $252.49. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $374.23.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AVGO. Norges Bank acquired a new stake in shares of Broadcom in the 2nd quarter worth $18,579,549,000. Nuveen LLC acquired a new stake in shares of Broadcom in the 1st quarter worth $6,649,117,000. Price T Rowe Associates Inc. MD lifted its stake in shares of Broadcom by 37.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer’s stock worth $10,968,270,000 after acquiring an additional 17,985,046 shares during the period. GAMMA Investing LLC lifted its stake in shares of Broadcom by 18,179.3% in the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer’s stock worth $2,892,548,000 after acquiring an additional 17,181,652 shares during the period. Finally, Vanguard Group Inc. lifted its stake in shares of Broadcom by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock worth $133,261,046,000 after acquiring an additional 6,222,802 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Broadcom news, CFO Kirsten M. Spears sold 7,498 shares of the stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $347.66, for a total value of $2,606,754.68. Following the sale, the chief financial officer directly owned 313,330 shares of the company’s stock, valued at approximately $108,932,307.80. This represents a 2.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Henry Samueli sold 368,797 shares of the stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the transaction, the director directly owned 37,722,534 shares in the company, valued at $12,746,821,463.94. This trade represents a 0.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders bought 3,550 shares of company stock worth $1,227,869 and sold 666,071 shares worth $225,623,008. Corporate insiders own 2.00% of the company’s stock.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd will be issued a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, September 22nd. Broadcom’s dividend payout ratio is currently 60.20%.

Broadcom Company Profile

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.