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