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2 Promising Technology Services Stocks to Buy After Earnings
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Following their favorable fourth quarter reports last Thursday, DocuSign (DOCU - Free Report) and Marvell Technology (MRVL - Free Report) are two technology services stocks that are worthy of investors' consideration.
Technological advances in business services are always crucial and the notion that DocuSign and Marvell Technology have a clearer path to growth is hard to overlook. Furthermore, the prospects of both companies may continue to brighten with the Fed alluding to the possibility of rate cuts later in the year.
Correlating with their improved business operations, let’s see why now is a good time to buy DocuSign and Marvell Technology’s stock.
DocuSign Q4 Review
Undoubtedly, DocuSign’s agreement cloud services have helped streamline the process of signing documents and sound quarterly growth helped reconfirm the company is still benefiting from its popularity.
DocuSign’s Q4 earnings of $0.76 a share jumped 16% from the comparative quarter and impressively surpassed expectations of $0.64 a share. On the top line, Q4 sales of $712.39 million rose 8% from a year ago and beat estimates of $698.05 million by 2%. More impressive, DocuSign has now surpassed earnings expectations for seven consecutive quarters posting an average earnings surprise of 23.72% in its last four quarterly reports.
Image Source: Zacks Investment Research
Further alluding to DocuSign's improved business operations is that its free cash flow more than doubled to $248.6 million compared to $113 million in the prior year quarter.
Image Source: Zacks Investment Research
Marvell Technology Q4 Review
As a global leader in data infrastructure semiconductor solutions to a variety of end markets, Marvell Technology’s Q4 top and bottom-line figures were not overwhelming but the boost that artificial intelligence has given its data center revenue should catch investors attention going forward.
Similar to Nvidia (NVDA - Free Report) , AI is driving Marvell Technology’s data center growth to new heights. To that point, Marvell Technology’s data center revenue for the fourth quarter came in at $765.3 million which beat Zacks estimates by 1% and increased 54% from $497.6 million a year ago while soaring 38% sequentially.
Image Source: Zacks Investment Research
Overall, Marvell Technology posted Q4 sales of $1.42 billion which was up 1% year over year and slightly beat estimates of $1.41 billion. Fourth quarter earnings of $0.46 per share were virtually flat from a year ago and came in line with estimates.
Image Source: Zacks Investment Research
Growth & Outlook
Notably, DocuSign ended its fiscal 2024 with total sales increasing 10% to $2.76 billion and annual earnings soaring 47% to $2.98 per share. Based on Zacks estimates, DocuSign’s sales are forecasted to rise 5% in FY25 and expand another 6% in FY26 to $3.1 billion. Annual earnings are expected to dip -1% in FY25 but rebound and jump 10% in FY26 to $3.27 per share.
Image Source: Zacks Investment Research
As for Marvell Technology, it wrapped up its FY24 with total sales dipping -7% to $5.51 billion following a record year that saw its top line at $5.92 billion. Full-year EPS of $1.51 was down from $2.12 per share in FY23. However, Marvell Technology’s annual earnings are projected to rebound and leap 28% in FY25 and then soar another 39% in FY26 to $2.71 per share. Plus, total sales are anticipated to rise 3% in FY25 and climb another 23% in FY26 to $7.14 billion.
Image Source: Zacks Investment Research
Bottom Line
DocuSign’s free cash flow growth and the rapid improvement in Marvell Technology’s data center revenue are very appealing. This could very well fuel their favorable outlooks with both stocks sporting a Zacks Rank #2 (Buy) at the moment.
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2 Promising Technology Services Stocks to Buy After Earnings
Following their favorable fourth quarter reports last Thursday, DocuSign (DOCU - Free Report) and Marvell Technology (MRVL - Free Report) are two technology services stocks that are worthy of investors' consideration.
Technological advances in business services are always crucial and the notion that DocuSign and Marvell Technology have a clearer path to growth is hard to overlook. Furthermore, the prospects of both companies may continue to brighten with the Fed alluding to the possibility of rate cuts later in the year.
Correlating with their improved business operations, let’s see why now is a good time to buy DocuSign and Marvell Technology’s stock.
DocuSign Q4 Review
Undoubtedly, DocuSign’s agreement cloud services have helped streamline the process of signing documents and sound quarterly growth helped reconfirm the company is still benefiting from its popularity.
DocuSign’s Q4 earnings of $0.76 a share jumped 16% from the comparative quarter and impressively surpassed expectations of $0.64 a share. On the top line, Q4 sales of $712.39 million rose 8% from a year ago and beat estimates of $698.05 million by 2%. More impressive, DocuSign has now surpassed earnings expectations for seven consecutive quarters posting an average earnings surprise of 23.72% in its last four quarterly reports.
Image Source: Zacks Investment Research
Further alluding to DocuSign's improved business operations is that its free cash flow more than doubled to $248.6 million compared to $113 million in the prior year quarter.
Image Source: Zacks Investment Research
Marvell Technology Q4 Review
As a global leader in data infrastructure semiconductor solutions to a variety of end markets, Marvell Technology’s Q4 top and bottom-line figures were not overwhelming but the boost that artificial intelligence has given its data center revenue should catch investors attention going forward.
Similar to Nvidia (NVDA - Free Report) , AI is driving Marvell Technology’s data center growth to new heights. To that point, Marvell Technology’s data center revenue for the fourth quarter came in at $765.3 million which beat Zacks estimates by 1% and increased 54% from $497.6 million a year ago while soaring 38% sequentially.
Image Source: Zacks Investment Research
Overall, Marvell Technology posted Q4 sales of $1.42 billion which was up 1% year over year and slightly beat estimates of $1.41 billion. Fourth quarter earnings of $0.46 per share were virtually flat from a year ago and came in line with estimates.
Image Source: Zacks Investment Research
Growth & Outlook
Notably, DocuSign ended its fiscal 2024 with total sales increasing 10% to $2.76 billion and annual earnings soaring 47% to $2.98 per share. Based on Zacks estimates, DocuSign’s sales are forecasted to rise 5% in FY25 and expand another 6% in FY26 to $3.1 billion. Annual earnings are expected to dip -1% in FY25 but rebound and jump 10% in FY26 to $3.27 per share.
Image Source: Zacks Investment Research
As for Marvell Technology, it wrapped up its FY24 with total sales dipping -7% to $5.51 billion following a record year that saw its top line at $5.92 billion. Full-year EPS of $1.51 was down from $2.12 per share in FY23. However, Marvell Technology’s annual earnings are projected to rebound and leap 28% in FY25 and then soar another 39% in FY26 to $2.71 per share. Plus, total sales are anticipated to rise 3% in FY25 and climb another 23% in FY26 to $7.14 billion.
Image Source: Zacks Investment Research
Bottom Line
DocuSign’s free cash flow growth and the rapid improvement in Marvell Technology’s data center revenue are very appealing. This could very well fuel their favorable outlooks with both stocks sporting a Zacks Rank #2 (Buy) at the moment.