Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting results tomorrow after market close. Here’s what you need to know.
Marvell Technology beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.27 billion, down 5.1% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
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 2.7% year on year to $1.46 billion, a reversal from the 7.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marvell Technology has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Marvell Technology’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3%, and Semtech reported revenues up 17.9%, topping estimates by 2%. Teradyne traded down 11.1% following the results while Semtech was up 17.5%.
Read our full analysis of Teradyne’s results here and Semtech’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 2.4% on average over the last month. Marvell Technology is up 10.2% during the same time and is heading into earnings with an average analyst price target of $96.79 (compared to the current share price of $92.99).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
