Marvell Technology (MRVL) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/05/24 4:31 am EDT

Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Marvell Technology reported revenues of $1.42 billion, up 5.62% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in 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 10.2% year on year to $1.3 billion, a further deceleration on the 73.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Marvell Technology Total Revenue

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 Q1 earnings results, giving us a hint of what we can expect. Kulicke and Soffa's revenues decreased 55% year on year, beating analyst estimates by 1.17% and Teradyne reported revenue decline of 18.2% year on year, exceeding estimates by 2.4%. Kulicke and Soffa traded up 1.87% on the results, Teradyne was up 8.46%. Read our full analysis of Kulicke and Soffa's results here and Teradyne's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 9.11% over the last month. Marvell Technology is up 26% during the same time, and is heading into the earnings with analyst price target of $57.2, compared to share price of $46.5.

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.