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Broadcom Inc. (NASDAQ: AVGO) is scheduled to release its fiscal second-quarter financial results after the markets close on Thursday. The consensus estimates are calling for $5.18 in earnings per share (EPS) and $5.69 billion in revenue. In the same period of last year, the company said it had EPS of $4.88 on $5.02 billion in revenue.

Broadcom announced earlier this week that certain subsidiaries of the company have entered into a “statement of work” with Apple. The supply arrangement is said to be for two years of new programs.

Under terms of the statement of work, Broadcom has agreed to supply Apple with specified, radio-frequency front end components and modules for Apple’s smartphones, tablets and watches. Broadcom also will maintain and allocate sufficient manufacturing capacity and other resources to Apple to make these products.

Where things get difficult to project longer term is Apple’s obligation. The SEC filing showed that Apple intends to source all of its requirements for such radio-frequency front end components and modules from Broadcom. That said, Apple is not required to source all of those components, and the filing also left in the clause that the intention will be so long as Broadcom is able to meet certain development, supply and quality commitments.

Monday’s press release did not go into details on specifics for revenues. It said, “The agreement also provides for various pricing schedules and methodologies applicable to purchases of the covered company (Broadcom) products.”

Overall, Broadcom has underperformed the broad markets, with its stock up about 10% year to date. In the past 52 weeks, the stock is up only 7%.

A few analysts weighed in on Broadcom ahead of the report:

• Morgan Stanley has an Equal Weight rating and a $262 price target.
• Rosenblatt Securities has a Buy rating with a $350 price target.
• UBS Group has a Buy rating with a $325 price target.
• KeyCorp has an Overweight rating and a $350 price target.
• Mizuho has a Buy rating with a $335 price target.

Shares of Broadcom traded at $279.09 on Thursday, in a 52-week range of $197.46 to $323.20. The consensus price target is $316.61.