It has been about a month since the last earnings report for Marvell Technology (MRVL Quick QuoteMRVL - Free Report) . Shares have added about 13.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Marvell due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Marvell Tops Q1 Earnings & Revenue Estimates, Guides Solid

Marvell Technology Group delivered first-quarter fiscal 2022 non-GAAP earnings of 29 cents, beating the Zacks Consensus Estimate of 27 cents. Moreover, the reported figure surged 61.1% from the year-ago quarter tally.

Marvell’s revenues of $832.3 million surpassed the consensus mark of $803 million. In addition, the revenue figure increased 20% year over year. 5G and Cloud product ramp-ups, along with revenue contribution from the recently-acquired Inphi Corporation business, were major driving factors.

Quarter Details

In the end markets, storage revenues (36% of total revenues) grew 17% year over year to $302.9 million.

The networking business (60%) revenues jumped 26% year on year to $498.3 million.

Other product revenues (4%) during the fiscal first quarter declined 24% on a year-over-year basis to $31.1 million.

Notably, total core business constituted 96% of total revenues and climbed 23% year over year to $801.2 million.

Marvell’s non-GAAP gross margin expanded 150 basis points (bps) to 64.3%. Non-GAAP operating expenses flared up 2.2% year over year to $306.3 million. Non-GAAP operating margin expanded 790 bps year on year to 27.5%.

Balance Sheet and Cash Flow

Marvell exited the reported quarter with cash and cash equivalents of $522.5 million compared with the previous quarter’s $748.5 million. The company’s long-term debt totaled $4.67 billion.

The firm uses $13.7 million of cash during the fiscal first quarter for operational activities. Marvell returned $40.5 million to shareholders through dividend payments during the quarter.

Q2 Guidance

Marvell expects a pause in 5G deployment in China and the ongoing supply constraint to adversely impact its fiscal second-quarter performance. However, accelerated 5G adoptions in the United States and other regions, along with broad growth across multiple products, are likely to more than offset the negative impact of the aforementioned factors.

The company projects fiscal second-quarter revenues of $1.065 billion (up or down up to 3%). The Zacks Consensus Estimate for revenues is pegged at $838.5 million, suggesting growth of 15.3% from the year-ago quarter.

Non-GAAP earnings per share are expected to be approximately 31 cents (+/- 3 cents). The consensus mark of 31 cents indicates a 47.6% year-over-year surge.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted -15.55% due to these changes.

VGM Scores

Currently, Marvell has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Marvell has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.