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Marvell (MRVL) to Report Q2 Earnings: What's in the Cards?

Marvell Technology MRVL is scheduled to report second-quarter fiscal 2023 results on Aug 25.

The company projects revenues of $1.515 billion (up or down up to 3%) for the fiscal second quarter. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, suggesting growth of 40.8% from the year-ago period.

Marvell expects non-GAAP earnings per share to be approximately 56 cents (+/- 3 cents). The consensus mark of 56 cents is in line with Marvell’s forecast. The bottom-line figure is expected to increase 64.7% year over year.

Marvell surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.2%.

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 Note

Marvell’s second-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 first-quarter conference call, Marvell stated that it anticipates strong sequential revenue growth in the second quarter, driven by the substantial contribution from the cloud data center end market, enterprise networking end market, and combined auto & industrial end market in the United States and other regions.

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

Record bookings from data infrastructure end markets and the ramp-up of multiple Ethernet design win in upcoming vehicles are anticipated to have driven revenues significantly in the fiscal second 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-related impacts might act as headwinds, which are likely to curb Marvell’s ability to fully meet the increase in demand for some of its product offerings.

Marvell expects a second-quarter non-GAAP gross margin of 65-65.5%, while non-GAAP operating expenses are estimated to be approximately $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 #4 (Sell) 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 Favorable Combinations

Per our model, Chewy CHWY, Oracle ORCL and General Mills GIS have the right combination of elements to post an earnings beat in their upcoming releases.

Chewy has a Zacks Rank #1 and an Earnings ESP of +1.03%. The company is scheduled to report second-quarter fiscal 2023 results on Aug 30. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the second-quarter loss of Chewy is pegged at 12 cents per share, suggesting a year-over-year decline of 0.04%. The consensus mark for revenues stands at $2.50 billion, indicating growth of 16% year over year.

Oracle is expected to report first-quarter fiscal 2023 results on Sep 12. The stock has a Zacks Rank #2 and an Earnings ESP of +1.41%. Its earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 5.8%.

The Zacks Consensus Estimate for Oracle’s quarterly earnings stands at $1.07 per share, suggesting year-over-year growth of 3.9%. Its quarterly revenues are estimated to decrease 17.9% year over year to $11.47 billion.

General Mills has a Zacks Rank #2 and an Earnings ESP of +3.63%. The company is likely to report its first-quarter fiscal 2023 results on Sep 28. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 6.5%.

The Zacks Consensus Estimate for GIS’ first-quarter earnings is pegged at 98 cents per share, suggesting a year-over-year fall of 1.01%. The consensus mark for revenues stands at $4.62 billion, indicating a year-over-year improvement of 1.7%.

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


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