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Marvell (MRVL) to Report Q2 Earnings: What's in the Offing?
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Marvell Technology Group Ltd. (MRVL - Free Report) is slated to report second-quarter fiscal 2022 results on Aug 26.
The company projects revenues of $1.065 billion (up or down up to 3%) for the quarter. The Zacks Consensus Estimate for revenues is pegged at $1.07 billion, suggesting growth of 46.5% from the year-ago period.
Marvell expects non-GAAP earnings per share to be approximately 31 cents (+/- 3 cents). The consensus mark of 31 cents indicates a 47.6% increase, year over year.
Notably, Marvell's guidance for the fiscal first quarter takes into account the U.S. government's export restrictions on certain Chinese customers. The company’s wider guided range for revenues and earnings also reflects the uncertainties associated with the coronavirus pandemic.
The company surpassed the Zacks Consensus Estimate twice in the trailing four quarters and met on the other two occasions, the average surprise being 3.1%.
Let’s see how things have shaped up prior to this announcement.
Marvell is likely to have benefited from solid demand for its networking products, mainly across the data-center and 5G infrastructure end markets.
In addition, 5G and Cloud product ramp-ups, along with revenue contributions from the recently-acquired Inphi Corporation business might have boosted Marvell’s networking segment revenues during the quarter under review. The consensus mark for networking revenues is pegged at $699 million, calling for a jump of 72.2% year over year.
Moreover, record bookings and ramp-up of multiple Ethernet design wins in upcoming vehicles are anticipated to have driven revenue growth significantly during the fiscal second quarter. The automotive business is likely to have put up an impressive show during the period in discussion.
Furthermore, Marvell estimates its Storage business to display year-over-year growth in the mid-teen range for the fiscal second quarter. The Zacks Consensus Estimate for storage business revenues is pegged at $334 million, calling for an improvement from the year-ago quarter’s $291 million.
This upswing is likely to have been aided by a strong recovery in the Fibre Channel business. Cloud storage revenues are also anticipated to have continued improving on significant contributions from Marvell’s preamplifiers.
However, certain supply-chain challenges might have been a dampener, curbing Marvell’s ability to fully meet the increase in demand for some of its networking products.
Also, the U.S. government's export restrictions on certain Chinese customers are expected to have weighed on the top line.
What Our Model Says
Our proven model does not predict an earnings beat for Marvell this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Marvell currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
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Marvell (MRVL) to Report Q2 Earnings: What's in the Offing?
Marvell Technology Group Ltd. (MRVL - Free Report) is slated to report second-quarter fiscal 2022 results on Aug 26.
The company projects revenues of $1.065 billion (up or down up to 3%) for the quarter. The Zacks Consensus Estimate for revenues is pegged at $1.07 billion, suggesting growth of 46.5% from the year-ago period.
Marvell expects non-GAAP earnings per share to be approximately 31 cents (+/- 3 cents). The consensus mark of 31 cents indicates a 47.6% increase, year over year.
Notably, Marvell's guidance for the fiscal first quarter takes into account the U.S. government's export restrictions on certain Chinese customers. The company’s wider guided range for revenues and earnings also reflects the uncertainties associated with the coronavirus pandemic.
The company surpassed the Zacks Consensus Estimate twice in the trailing four quarters and met on the other two occasions, the average surprise being 3.1%.
Let’s see how things have shaped up prior to this announcement.
Marvell Technology, Inc. Price and EPS Surprise
Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. Quote
Factors to Consider
Marvell is likely to have benefited from solid demand for its networking products, mainly across the data-center and 5G infrastructure end markets.
In addition, 5G and Cloud product ramp-ups, along with revenue contributions from the recently-acquired Inphi Corporation business might have boosted Marvell’s networking segment revenues during the quarter under review. The consensus mark for networking revenues is pegged at $699 million, calling for a jump of 72.2% year over year.
Moreover, record bookings and ramp-up of multiple Ethernet design wins in upcoming vehicles are anticipated to have driven revenue growth significantly during the fiscal second quarter. The automotive business is likely to have put up an impressive show during the period in discussion.
Furthermore, Marvell estimates its Storage business to display year-over-year growth in the mid-teen range for the fiscal second quarter. The Zacks Consensus Estimate for storage business revenues is pegged at $334 million, calling for an improvement from the year-ago quarter’s $291 million.
This upswing is likely to have been aided by a strong recovery in the Fibre Channel business. Cloud storage revenues are also anticipated to have continued improving on significant contributions from Marvell’s preamplifiers.
However, certain supply-chain challenges might have been a dampener, curbing Marvell’s ability to fully meet the increase in demand for some of its networking products.
Also, the U.S. government's export restrictions on certain Chinese customers are expected to have weighed on the top line.
What Our Model Says
Our proven model does not predict an earnings beat for Marvell this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Marvell currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
CarMax (KMX - Free Report) has an Earnings ESP of +3.49% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoZone (AZO - Free Report) has an Earnings ESP of +9.54% and carries a Zacks Rank #2, at present.
AAR (AIR - Free Report) has an Earnings ESP of +4.26% and holds a Zacks Rank #2, at present.