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What To Expect From Marvell Technology’s (MRVL) Q3 Earnings


Kayode Omotosho /
2022/11/30 4:12 am EST
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Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter Marvell Technology reported revenues of $1.51 billion, up 40.9% year on year, missing analyst expectations by 0%. It was a mixed quarter for the company, with a significant improvement in gross margin but underwhelming revenue guidance for the next quarter.

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 28.5% year on year to $1.55 billion, slowing down from the 61.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.

Marvell Technology Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Marvell Technology's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 17.8% year on year, beating analyst estimates by 3.36% and Applied Materials reported revenues up 10.2% year on year, exceeding estimates by 4.85%. Lam Research traded up 2.37% on the results, Applied Materials was up 2.39%. Read our full analysis of Lam Research's results here and Applied Materials's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 8.89% over the last month. Marvell Technology is up 5.08% during the same time, and is heading into the earnings with analyst price target of $70.3, compared to share price of $42.97.

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.