Marvell Technology (MRVL) Q2 Earnings Report Preview: What To Look For
Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting earnings tomorrow after market close. Here's what to expect.
Last quarter Marvell Technology reported revenues of $1.32 billion, down 8.65% year on year, beating analyst revenue expectations by 1.67%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its operating margin.
Is Marvell Technology buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Marvell Technology's revenue to decline 12.2% year on year to $1.33 billion, a deceleration on the 41% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Marvell Technology's peers in the semiconductor manufacturing segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. IPG Photonics's revenues decreased 9.83% year on year, missing analyst estimates by 1.79%, and Applied Materials reported revenue decline of 1.46% year on year, exceeding estimates by 4.29%. IPG Photonics traded down 1.45% on the results, Applied Materials was up 3.45%.
The fears around raising interest rates have been putting pressure on tech stocks and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share price declining 4.82% over the last month. Marvell Technology is down 4.19% during the same time, and is heading into the earnings with analyst price target of $70.1, compared to share price of $61.15.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.