Marvell Technology (MRVL) Reports Q3: Everything You Need To Know Ahead Of Earnings

Max Juang /
2023/11/29 2:00 am EST

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 $1.34 billion, down 11.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with strong improvement in inventory levels. We were also glad that its EPS outperformed Wall Street's estimates. On the other hand, its free cash flow fell short of analysts' expectations and its gross and operating margins regrettably declined.

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 8.9% year on year to $1.40 billion, a deceleration on the 26.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 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 Q3 earnings results, giving us a hint of what we can expect. Teradyne's revenues decreased 14.9% year on year, beating analyst estimates by 2.9% and Lam Research reported revenue decline of 31.4% year on year, exceeding estimates by 1.9%. Teradyne traded flatĀ on the results, and Lam Research was down 3.5%.

Read our full analysis of Teradyne's results here and Lam Research's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 14.3% over the last month. Marvell Technology is up 16.2% during the same time, and is heading into the earnings with analyst price target of $69.5, compared to share price of $54.8.

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.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned.