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Marvell (MRVL) to Post Q1 Earnings: What's in the Offing?
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Marvell Technology Group Ltd. (MRVL - Free Report) is set to report first-quarter fiscal 2021 results on May 28.
The company projects revenues of $680 million (up or down up to 5%) for the quarter. The Zacks Consensus Estimate for revenues stands at $676.13 million, suggesting growth of 2.06% from the year-ago quarter’s reported figure.
Marvell expects non-GAAP earnings per share between 11 cents and 17 cents. The consensus mark of 14 cents indicates a 12.5% decline from the year-ago quarter’s earnings.
The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and matched in the remaining one. The four-quarter beat is 4.9%, on average.
Marvell Technology Group Ltd. Price and EPS Surprise
Last year’s acquisitions of Avera and Aquantia are projected to have driven Marvell’s networking segment revenues in the first quarter. Aquantia’s strong pipeline of design wins is likely to have been a positive. The consensus mark for networking revenues is pegged at $356 million, indicating 4.4% year-over-year growth.
However, Marvell expects networking revenues for the first quarter to have witnessed a low to mid-single-digit decline sequentially due to the lack of Wi-Fi revenues.
Also, the company’s storage revenues are expected to have declined sequentially, as it is a seasonally slow quarter for the business. Moreover, negative impacts on storage demand due to the coronavirus are also likely to have affected the segment. The company expects a mid-single-digit sequential decline, on a percentage basis, for the storage segment.
Notably, Marvell's guidance for the first quarter of fiscal 2021 takes into account the U.S. government's export restriction on certain Chinese customers. The company also expects a 5% decrease in revenues due to the uncertainty associated with the coronavirus.
The first quarter is typically and seasonally a weak quarter for the storage business. Due to coronavirus-related impacts, a mid-single-digit sequential decline is expected to hurt the storage segment.
Also, other product revenues are expected to have slightly fallen sequentially. The Zacks Consensus Estimate for other product revenues is pegged at $37.35 million, suggesting a 12% year-over-year decrease.
What Our Model Says
The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are a few stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +26.60% and a Zacks Rank #2.
Fortinet, Inc. (FTNT - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Marvell (MRVL) to Post Q1 Earnings: What's in the Offing?
Marvell Technology Group Ltd. (MRVL - Free Report) is set to report first-quarter fiscal 2021 results on May 28.
The company projects revenues of $680 million (up or down up to 5%) for the quarter. The Zacks Consensus Estimate for revenues stands at $676.13 million, suggesting growth of 2.06% from the year-ago quarter’s reported figure.
Marvell expects non-GAAP earnings per share between 11 cents and 17 cents. The consensus mark of 14 cents indicates a 12.5% decline from the year-ago quarter’s earnings.
The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and matched in the remaining one. The four-quarter beat is 4.9%, on average.
Marvell Technology Group Ltd. Price and EPS Surprise
Marvell Technology Group Ltd. price-eps-surprise | Marvell Technology Group Ltd. Quote
Factors at Play
Last year’s acquisitions of Avera and Aquantia are projected to have driven Marvell’s networking segment revenues in the first quarter. Aquantia’s strong pipeline of design wins is likely to have been a positive. The consensus mark for networking revenues is pegged at $356 million, indicating 4.4% year-over-year growth.
However, Marvell expects networking revenues for the first quarter to have witnessed a low to mid-single-digit decline sequentially due to the lack of Wi-Fi revenues.
Also, the company’s storage revenues are expected to have declined sequentially, as it is a seasonally slow quarter for the business. Moreover, negative impacts on storage demand due to the coronavirus are also likely to have affected the segment. The company expects a mid-single-digit sequential decline, on a percentage basis, for the storage segment.
Notably, Marvell's guidance for the first quarter of fiscal 2021 takes into account the U.S. government's export restriction on certain Chinese customers. The company also expects a 5% decrease in revenues due to the uncertainty associated with the coronavirus.
The first quarter is typically and seasonally a weak quarter for the storage business. Due to coronavirus-related impacts, a mid-single-digit sequential decline is expected to hurt the storage segment.
Also, other product revenues are expected to have slightly fallen sequentially. The Zacks Consensus Estimate for other product revenues is pegged at $37.35 million, suggesting a 12% year-over-year decrease.
What Our Model Says
The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are a few stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Dropbox, Inc. (DBX - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +26.60% and a Zacks Rank #2.
Fortinet, Inc. (FTNT - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>