Marvell (MRVL) Reports Q4: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2022/03/02 6:01 am EST
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Networking chips designer Marvell (NASDAQ: MRVL) will be reporting earnings tomorrow after market close. Here's what to expect.

Last quarter Marvell reported revenues of $1.21 billion, up 61.4% year on year, beating analyst revenue expectations by 5.44%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.

Is Marvell buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Marvell's revenue to grow 65.9% year on year to $1.32 billion, improving on the 11.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.69%.

Looking at Marvell's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Applied Materials delivered top-line growth of 21.4% year on year, beating analyst estimates by 1.8% and Lam Research Corporation reported revenues up 51.3% year on year, missing analyst estimates by 4.26%. Applied Materials traded up 3.02% on the results, Lam Research Corporation was down 5.12%. Read our full analysis of Applied Materials's results here and Lam Research Corporation's results here.

Tech stocks have been under pressure since the end of last year and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.93% over the last month. Marvell is down 9% during the same time, and is heading into the earnings with analyst price target of $101.3, compared to share price of $65.9.

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.