Networking chips designer Marvell Technology (NASDAQ: MRVL) will be announcing earnings results this Thursday after market close. Here’s what investors should know.
Marvell Technology beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.90 billion, up 63.3% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Is Marvell Technology a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Marvell Technology’s revenue to grow 58% year on year to $2.01 billion, a reversal from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.67 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marvell Technology has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at Marvell Technology’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IPG Photonics’s revenues decreased 2.7% year on year, beating analysts’ expectations by 9.4%, and Amkor reported revenues up 3.4%, topping estimates by 6.3%. IPG Photonics traded down 6.9% following the results while Amkor was up 18.1%.
Read our full analysis of IPG Photonics’s results here and Amkor’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 3.2% on average over the last month. Marvell Technology is down 1.4% during the same time and is heading into earnings with an average analyst price target of $91.10 (compared to the current share price of $74.85).
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