Q3 Earnings Outperformers: Marvell Technology (NASDAQ:MRVL) And The Rest Of The Semiconductor Manufacturing Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the semiconductor manufacturing stocks, starting with Marvell Technology (NASDAQ:MRVL).
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 0.6% while next quarter's revenue guidance was 3.9% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 18.7% on average since the previous earnings results.
Marvell Technology (NASDAQ:MRVL)
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Marvell Technology reported revenues of $1.42 billion, down 7.7% year on year, topping analyst expectations by 1.3%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
"Marvell delivered third quarter fiscal 2024 revenue of $1.419 billion, growing 6% sequentially, above the midpoint of guidance. Revenue from our datacenter end market grew over 20% sequentially in the third quarter, and we expect growth of over 30% sequentially in our fourth quarter," said Matt Murphy, Marvell's Chairman and CEO.
The stock is up 17.3% since the results and currently trades at $65.36.
Read our full report on Marvell Technology here, it's free.
Best Q3: Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $128.8 million, down 10.5% year on year, outperforming analyst expectations by 4.6%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.
Nova delivered the biggest analyst estimates beat among its peers. The stock is up 30.2% since the results and currently trades at $132.36.
Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.
Slowest Q3: IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $301.4 million, down 13.6% year on year, falling short of analyst expectations by 4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
The stock is up 16.4% since the results and currently trades at $97.18.
Read our full analysis of IPG Photonics's results here.
Entegris (NASDAQ:ENTG)
With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Entegris reported revenues of $888.2 million, down 10.6% year on year, falling short of analyst expectations by 0.4%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
The stock is up 25.3% since the results and currently trades at $111.3.
Read our full, actionable report on Entegris here, it's free.
FormFactor (NASDAQ:FORM)
With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.
FormFactor reported revenues of $171.6 million, down 5.1% year on year, surpassing analyst expectations by 2.8%. It was a decent quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
The stock is up 15.9% since the results and currently trades at $38.73.
Read our full, actionable report on FormFactor here, it's free.
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The author has no position in any of the stocks mentioned
