Business

Broadcom results to provide clear insight into trade war impact


The big question on analysts’ minds heading into Thursday’s post-market earnings report is whether Broadcom CEO Hock Tan’s prediction of “meaningful growth” in the second half of 2019 remains intact.


Wall Street was feeling pretty good about Broadcom Inc. in mid-March as its semiconductor business appeared to be turning the corner and Chief Executive Officer Hock Tan saw “meaningful growth” in the second half of the year.


“We view AVGO shares as attractive ahead of earnings given what appears to be lower expectations and our belief that the company’s longer-term growth and profitability prospects remain solid,” MKM Partners analyst Ruben Roy wrote in a research note on Monday, referring to Broadcom by its ticker symbol.


The San Jose, California-based company’s products and global customer base make its results a key indicator for how trade tensions are affecting the semiconductor industry.


Bank of America analysts led by Vivek Arya reiterated their buy rating on Broadcom on Monday, saying the effects of the Huawei ban and macroeconomic risks are “well expected.”


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