Earnings Forecast: Major Moves for Broadcom and Costco Ahead

In the latest report, several companies are set to announce earnings, with Broadcom expected to see a notable EPS increase, while RH anticipates a staggering rise. However, Quanex and Electrovaya face declines, potentially impacting stock performance.

Date: 15-12-2024

AI Rating: 6

The report outlines several companies expected to report earnings shortly. Each one presents varying forecasts, which can significantly impact stock prices. Here’s a closer look:

Broadcom Inc. (AVGO) is forecasted a consensus earnings per share (EPS) of $1.13, showing a positive increase of 15.31% year-over-year. Nonetheless, AVGO missed analyst expectations by -3.37% in Q1 2024, which may create a cautious sentiment among investors. The 2024 Price to Earnings (P/E) ratio of 48.34, significantly higher than the industry average of 31.20, indicates a robust earnings growth expectation compared to its competitors.
Costco Wholesale Corporation (COST) anticipates an EPS of $3.79, reflecting an increase of 8.91% year-over-year. Costco has previously beaten estimates for three consecutive quarters, which may bolster investor confidence. Its P/E ratio of 55.98 versus an industry average of 24.50 could suggest that investors expect higher earnings growth.
RH (RH), the consumer goods company, could report an EPS of $2.67, indicating an extraordinary year-over-year increase of 735.71%. This dramatic rise only strengthens confidence given its reported P/E ratio of 70.86 against an industry benchmark of 16.50.
Quanex Building Products Corporation (NX)'s EPS forecast stands at $0.53, showing a concerning decrease of 44.21% year-over-year. Despite beating estimates consistently in the past, the drop may raise red flags for investors concerned about the company's sustainability. Its P/E ratio is expected at 13.98, slightly lower than the industry ratio of 14.40, signaling a potentially tepid performance.
Electrovaya Inc. (ELVA)'s forecasted EPS of $-0.01 indicates a hefty decrease of 150.00% from its previous performance, with recent misses on expectations heightening concern. Its P/E ratio being negative further emphasizes potential challenges ahead.

Overall, the varied earnings forecasts suggest significant potential for stock price movement, with companies like Broadcom, Costco, and RH indicating positive trajectories, while Electrovaya and Quanex may experience difficulties.

Stocks: AVGO COST RH NX ELVA