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Unpacking Q1 Earnings: Marvell Technology (NASDAQ:MRVL) In The Context Of Other Semiconductor Manufacturing Stocks


Anthony Lee /
2023/06/09 6:57 am EDT

As we reflect back on the just completed Q1 semiconductor manufacturing sector earnings season, we dig into the relative performance of Marvell Technology (NASDAQ:MRVL) and its peers.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers and data storage. The growth of data and technologies like artificial intelligence, 5G networks and smart cars are also creating a next wave of growth for the industry. To keep up with ever changing customer needs requires new tools that can design, fabricate and test at ever smaller sizes and more complex architectures, and that is driving the demand for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 3.16%, while on average next quarter revenue guidance was 1.49% under consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 19.1% since the previous earnings results, on average.

Marvell Technology (NASDAQ:MRVL)

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Marvell Technology reported revenues of $1.32 billion, down 8.65% year on year, beating analyst expectations by 1.67%. It was a mixed quarter for the company, with a significant improvement in inventory levels but a decline in operating margin.

"We delivered first quarter fiscal 2024 revenue of $1.322 billion, above the midpoint of guidance, and are forecasting sequential revenue growth in the second quarter. We are expecting revenue growth to accelerate in the second half of this fiscal year, accompanied by gross and operating margin expansion," said Matt Murphy, Marvell's President and CEO.

Marvell Technology Total Revenue

The stock is up 21.5% since the results and currently trades at $60.06.

Read our full report on Marvell Technology here, it's free.

Best Q1: Photronics (NASDAQ:PLAB)

Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Photronics reported revenues of $229.3 million, up 12.1% year on year, beating analyst expectations by 8.68%. It was an exceptional quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter beating Consensus.

Photronics Total Revenue

Photronics achieved the strongest analyst estimates beat among its peers. The stock is up 34.1% since the results and currently trades at $23.09.

Is now the time to buy Photronics? Access our full analysis of the earnings results here, it's free.

Weakest Q1: IPG Photonics (NASDAQ:IPGP)

Both a designer and manufacturer of most of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers that are used for cutting, welding and processing raw materials.

IPG Photonics reported revenues of $347.2 million, down 6.16% year on year, beating analyst expectations by 5.01%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

The stock is down 4.57% since the results and currently trades at $112.63.

Read our full analysis of IPG Photonics's results here.

Nova (NASDAQ:NVMI)

Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Nova reported revenues of $132.2 million, down 1.32% year on year, beating analyst expectations by 1.64%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

The stock is up 26% since the results and currently trades at $114.83.

Read our full, actionable report on Nova here, it's free.

Lam Research (NASDAQ:LRCX)

Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.

Lam Research reported revenues of $3.87 billion, down 4.7% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Lam Research had the weakest performance against analyst estimates among the peers. The stock is up 24.9% since the results and currently trades at $613.4.

Read our full, actionable report on Lam Research here, it's free.

The author has no position in any of the stocks mentioned