Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting earnings this Thursday after market hours. Here’s what you need to know.
Marvell Technology met analysts’ revenue expectations last quarter, reporting revenues of $2.42 billion, up 27.6% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and revenue guidance for next quarter topping analysts’ expectations.
Is Marvell Technology a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Marvell Technology’s revenue to grow 35.1% year on year, slowing from the 57.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Marvell Technology rarely misses Wall Street’s revenue estimates.
Looking at Marvell Technology’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kulicke and Soffa delivered year-on-year revenue growth of 123%, beating analysts’ expectations by 5.7%, and Semtech reported revenues up 32.7%, topping estimates by 4%. Kulicke and Soffa traded down 3.4% following the results.
Read our full analysis of Kulicke and Soffa’s results here and Semtech’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the semiconductor manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.2% on average over the last month. Marvell Technology is up 27.2% during the same time and is heading into earnings with an average analyst price target of $269.28 (compared to the current share price of $240.63).
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