Marvell Technology (MRVL) Q2 Earnings Report Preview: What To Look For

Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Marvell Technology met analysts’ revenue expectations last quarter, reporting revenues of $1.16 billion, down 12.2% year on year. It was a mixed quarter for the company, with a significant improvement in its gross margin but an increase in its inventory levels.

Is Marvell Technology a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Marvell Technology’s revenue to decline 6.5% year on year to $1.25 billion, improving from the 11.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marvell Technology has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Marvell Technology’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nova delivered year-on-year revenue growth of 27.8%, beating analysts’ expectations by 5.9%, and FormFactor reported revenues up 26.7%, topping estimates by 1.3%. Nova traded up 24.4% following the results while FormFactor was down 11.8%.

Read our full analysis of Nova’s results here and FormFactor’s results here.

Investors in the semiconductor manufacturing segment have had steady hands going into earnings, with share prices flat over the last month. Marvell Technology is up 10.5% during the same time and is heading into earnings with an average analyst price target of $90.3 (compared to the current share price of $69.41).

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