Back to top

Analyst Blog

On Dec 27, Zacks Investment Research upgraded Marvell Technology Group Ltd. (MRVL - Snapshot Report) to a Zacks Rank #1 (Strong Buy). The upgrade came on the back of solid third-quarter 2013 results and positive estimate revisions over the last 60 days.

Why the Upgrade?

Marvell delivered decent third-quarter results which came ahead of the Zacks Consensus Estimate. Revenue contributions from the end markets were in line with the expectations. Also, continuous share buybacks were a positive.

The semiconductor company’s Storage business was positively impacted by strength in solid state drives (SSDs) and hard disk drive (HDD) businesses. Moreover, the company’s Mobile and Wireless end markets saw an uptick in revenues due to device launches by Marvell’s customers and higher number of unit shipments of W-CDMA and TD-SCDMA 3G products. These factors offset the disappointing revenue performance by its Networking business which was impacted due to soft demand from enterprise network market.

Going forward, we remain positive on Marvell’s diverse revenue model and stable balance sheet and expect the company to maintain its growth trajectory. However, sluggish macroeconomic conditions coupled with higher material costs and the company’s European exposure could pose as the near-term headwind. Competition from the likes of Intel Corp (INTC - Analyst Report), Texas Instruments Inc. (TXN - Analyst Report) and LSI Corp. further adds to the woes.

Nonetheless, the expansion of Marvell’s broad 4G LTE portfolio that would strengthen its position in China reinforced the optimism. This is expected to act as a tailwind for the company’s near-term financial performance.  

Moreover, the company has witnessed positive estimate revisions for the current quarter as well as for the fiscal year. During the last 60 days, there have been four positive and two negative estimate revisions. This, in turn, resulted in a 2-cent increase in Marvell’s fourth-quarter earnings estimate (current estimate stands at 18 cents).

Similarly, for the fiscal 2013, six positive estimate revisions were witnessed in the last 60 days which has resulted in a 10-cent increase in the earnings estimate for the current fiscal (current estimate being 70 cents).

These factors culminated in the Zacks Rank upgrade on Marvell shares.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%