What To Expect From Marvell Technology’s (MRVL) Q1 Earnings

Kayode Omotosho /
2022/05/25 8:00 am EDT
Add to Watchlist

Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting results tomorrow afternoon. Here's what to expect.

Last quarter Marvell Technology reported revenues of $1.34 billion, up 68.3% year on year, beating analyst revenue expectations by 1.4%. It was a solid quarter for the company, with a significant improvement in operating margin and an exceptional revenue growth.

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 grow 71.3% year on year to $1.42 billion, improving on the 19.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 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 1.72%.

Looking at Marvell Technology's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Applied Materials delivered top-line growth of 11.8% year on year, missing analyst estimates by 1.63%,  and Lam Research reported revenues up 5.52% year on year, missing analyst estimates by 4.33%. Applied Materials traded down 4.61% on the results, and Lam Research was down 3.68%. Read our full analysis of Applied Materials's results here and Lam Research's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks down on average 1.47% over the last month. Marvell Technology is down 8.55% during the same time, and is heading into the earnings with analyst price target of $91, compared to share price of $52.8.

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.

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