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What's in the Offing for Marvell (MRVL) This Earnings Season?

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·4-min read
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Marvell Technology Group Ltd. MRVL is slated to report first-quarter fiscal 2023 results on May 26.

The company anticipates revenues of $1.425 billion (up or down up to 3%) for the fiscal first quarter. The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, suggesting growth of 71.4% from the year-ago period.

Marvell expects non-GAAP earnings per share to be approximately 51 cents (+/- 3 cents). The consensus mark of 51 cents is in line with Marvell’s forecast. The figure indicates a 75.9% increase year over year.

Marvell surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.6%.

Let’s see how things have shaped up before the announcement.

Marvell Technology, Inc. Price and EPS Surprise

Marvell Technology, Inc. Price and EPS Surprise
Marvell Technology, Inc. Price and EPS Surprise

Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. Quote

Factors to Consider

Marvell’s first-quarter performance is likely to have benefited from the solid demand for its networking products, primarily across the data center and 5G infrastructure end markets.

On its fourth-quarter conference call, Marvell stated that it anticipates strong sequential revenues in the first quarter, driven by the substantial contribution from the cloud data center end market, accelerated 5G adoptions in the United States and other regions and broad growth across multiple products.

Additionally, 5G and cloud product ramp-ups and revenues from the recently acquired Inphi Corporation business might have favored MRVL’s overall performance during the quarter under review.

Record bookings and the ramp-up of multiple Ethernet design wins in upcoming vehicles are anticipated to have driven revenues significantly in the fiscal first quarter. The consumer and industrial businesses are likely to have put up an impressive show in the quarter under review.

However, certain ongoing supply-chain challenges are anticipated to have acted as headwinds, which might have curbed Marvell’s ability to fully meet the increase in demand for some of its product offerings.

Marvell expects the first-quarter non-GAAP gross margin of 65-66%, while non-GAAP operating expenses are estimated between $430 million and $435 million.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Marvell this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

MRVL currently carries a Zacks Rank of #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Commercial Metals CMC, Dynagas LNG Partners DLNG and The Kroger Company KR have the right combination of elements to post an earnings beat in their upcoming releases.

Commercial Metals sports a Zacks Rank #1 and has an Earnings ESP of +38.66%. The company is scheduled to report third-quarter fiscal 2022 results on Jun 16. Commercial Metals’ earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 16%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMC’s third-quarter earnings is pegged at $1.54 per share, indicating a year-over-year increase of 48.1%. The consensus mark for revenues stands at $2.19 billion, suggesting a year-over-year increase of 18.9%.

Dynagas LNG Partners is expected to report first-quarter 2022 results on Jun 16. The company carries a Zacks Rank #2 and has an Earnings ESP of +3.03% at present. Dynagas LNG Partners’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 8.8%.

The Zacks Consensus Estimate for quarterly earnings is pegged at 17 cents per share, suggesting a year-over-year decline of 19.1%. DLNG’s quarterly revenues are estimated to decline by 6.2% year over year to $31.4 million.

Kroger currently carries a Zacks Rank #2 and has an Earnings ESP of +2.95%. The company is anticipated to report its first-quarter fiscal 2023 results on Jun 16. Kroger’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 22.1%.

The Zacks Consensus Estimate for Kroger’s first-quarter earnings stands at $1.27 per share, implying a year-over-year increase of 6.7%. KR is estimated to report revenues of $43.22 billion, suggesting growth of 4.7% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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The Kroger Co. (KR) : Free Stock Analysis Report
 
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
 
Commercial Metals Company (CMC) : Free Stock Analysis Report
 
Dynagas LNG Partners LP (DLNG) : Free Stock Analysis Report
 
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