Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting results tomorrow afternoon. Here’s what to look for.
Marvell Technology beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.82 billion, up 27.4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
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 61.7% year on year to $1.88 billion, a reversal from the 12.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 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 Q1 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 0.9%, and Amkor reported a revenue decline of 3.2%, topping estimates by 3%. FormFactor traded up 3.1% following the results while Amkor was down 2.7%.
Read our full analysis of FormFactor’s results here and Amkor’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 15.6% on average over the last month. Marvell Technology is up 9.6% during the same time and is heading into earnings with an average analyst price target of $96.26 (compared to the current share price of $64.33).
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