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Marvell Technology Q2 Preview: Can the Earnings Streak Continue?
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The Zacks Business Services Sector has been hit harder than most in 2022, down more than 20% and vastly underperforming the S&P 500. Even over the last month, the sector’s 2.9% return has lagged the S&P 500’s gain of 4%.
Marvell Technology (MRVL - Free Report) , a company within the sector, is on deck to unveil Q2 earnings on Thursday, August 25th, after market close.
Marvell Technology is a fabless designer, developer, and marketer of analog, mixed-signal, and digital signal processing integrated circuits.
The company carries a Zacks Rank #4 (Sell) with an overall VGM Score of a C.
How are things shaping up for the company? Let’s take a closer look.
Share Performance & Valuation
It’s been a harsh and challenging road for Marvell shares in 2022, down more than 40% and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Over the last month, MRVL shares have continued to lag the S&P 500, tacking on 3% in value.
Image Source: Zacks Investment Research
In addition, MRVL shares trade at steep valuation levels, further displayed by its Style Score of a D for Value. The company’s 30.5X forward P/E ratio is undoubtedly on the higher side, representing a slight 4% premium relative to its Zacks Sector.
Still, the value is below its five-year median of 44.2X.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been silent for the quarter to be reported over the last 60 days, with zero estimate revisions hitting the tape. Still, the Zacks Consensus EPS Estimate of $0.56 reflects a stellar 64% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
Marvell’s top-line appears to be in exceptional health as well – the company is forecasted to have generated $1.5 billion in quarterly revenue, reflecting Y/Y growth of a remarkable 41%.
Quarterly Performance & Market Reactions
Marvell has been on an inspiring earnings streak, exceeding the Zacks Consensus EPS Estimate in five consecutive quarters. Just in its latest print, the company penciled in a marginal 2% bottom-line beat.
Top-line results have also been noteworthy; MRVL has chained together six consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
The market has primarily reacted favorably in response to the company’s quarterly results as of late, with shares moving upwards following two of its previous three prints. Following the latest release, shares soared nearly 13%.
Putting Everything Together
Marvell Technology shares have lagged the general market year-to-date and over the last month, indicating that sellers have had a tough grip.
In addition, shares trade at steep valuation multiples but are well below their five-year median value.
Analysts haven’t had anything to say for the quarter to be reported, but estimates allude to serious top and bottom-line growth.
Furthermore, the company has consistently exceeded quarterly estimates, and the market has reacted favorably as of late following the majority of its previous three prints.
Heading into the release, Marvell Technology (MRVL - Free Report) carries a Zacks Rank #4 (Sell) with an overall VGM Score of a C.
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Marvell Technology Q2 Preview: Can the Earnings Streak Continue?
The Zacks Business Services Sector has been hit harder than most in 2022, down more than 20% and vastly underperforming the S&P 500. Even over the last month, the sector’s 2.9% return has lagged the S&P 500’s gain of 4%.
Marvell Technology (MRVL - Free Report) , a company within the sector, is on deck to unveil Q2 earnings on Thursday, August 25th, after market close.
Marvell Technology is a fabless designer, developer, and marketer of analog, mixed-signal, and digital signal processing integrated circuits.
The company carries a Zacks Rank #4 (Sell) with an overall VGM Score of a C.
How are things shaping up for the company? Let’s take a closer look.
Share Performance & Valuation
It’s been a harsh and challenging road for Marvell shares in 2022, down more than 40% and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Over the last month, MRVL shares have continued to lag the S&P 500, tacking on 3% in value.
Image Source: Zacks Investment Research
In addition, MRVL shares trade at steep valuation levels, further displayed by its Style Score of a D for Value. The company’s 30.5X forward P/E ratio is undoubtedly on the higher side, representing a slight 4% premium relative to its Zacks Sector.
Still, the value is below its five-year median of 44.2X.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been silent for the quarter to be reported over the last 60 days, with zero estimate revisions hitting the tape. Still, the Zacks Consensus EPS Estimate of $0.56 reflects a stellar 64% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
Marvell’s top-line appears to be in exceptional health as well – the company is forecasted to have generated $1.5 billion in quarterly revenue, reflecting Y/Y growth of a remarkable 41%.
Quarterly Performance & Market Reactions
Marvell has been on an inspiring earnings streak, exceeding the Zacks Consensus EPS Estimate in five consecutive quarters. Just in its latest print, the company penciled in a marginal 2% bottom-line beat.
Top-line results have also been noteworthy; MRVL has chained together six consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
The market has primarily reacted favorably in response to the company’s quarterly results as of late, with shares moving upwards following two of its previous three prints. Following the latest release, shares soared nearly 13%.
Putting Everything Together
Marvell Technology shares have lagged the general market year-to-date and over the last month, indicating that sellers have had a tough grip.
In addition, shares trade at steep valuation multiples but are well below their five-year median value.
Analysts haven’t had anything to say for the quarter to be reported, but estimates allude to serious top and bottom-line growth.
Furthermore, the company has consistently exceeded quarterly estimates, and the market has reacted favorably as of late following the majority of its previous three prints.
Heading into the release, Marvell Technology (MRVL - Free Report) carries a Zacks Rank #4 (Sell) with an overall VGM Score of a C.