What To Expect From Marvell Technology's (MRVL) Q1 Earnings

Networking chips designer Marvell Technology (NASDAQ: MRVL) will be reporting earnings tomorrow afternoon. Here's what investors should know.

Marvell Technology met analysts' revenue expectations last quarter, reporting revenues of $1.43 billion, flat year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' EPS estimates.

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 12.1% year on year to $1.16 billion, a further deceleration from the 8.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 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 twice over the last two years.

Looking at Marvell Technology's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lam Research's revenues decreased 2% year on year, beating analysts' expectations by 1.7%, and Amkor reported a revenue decline of 7.2%, in line with consensus estimates. Lam Research traded up 1.9% following the results while Amkor was also up 2.5%.

Read our full analysis of Lam Research's results here and Amkor's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 10% on average over the last month. Marvell Technology is up 19.2% during the same time and is heading into earnings with an average analyst price target of $88.1 (compared to the current share price of $78.56).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.