Marvell (MRVL) to Report Q2 Earnings: What's in the Offing?
Marvell Technology MRVL is slated to release second-quarter fiscal 2024 results on Aug 24.
For the fiscal second quarter, the company projects total revenues of $1.33 billion (+/- 5%). Marvell projects non-GAAP earnings per share for the fiscal second quarter to be approximately 32 cents (+/- 5 cents).
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a decrease of 12.3% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 32 cents per share, implying a year-over-year decrease of 43.9%.
Marvell’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 1.3%.
Let’s see how things have shaped up before this announcement.
Marvell Technology, Inc. Price and EPS Surprise
Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. Quote
Factors to Consider
Marvell’s second-quarter performance is likely to have been negatively impacted by softness in its product demand as original equipment manufacturers (OEMs) are rescheduling orders to manage excess chip inventories. As a result of broadening inventory corrections, MRVL forecast second-quarter fiscal 2024 revenues from its Data Center end market to remain flat sequentially.
Our estimate for the Data Center division’s second-quarter revenues is pegged at $435.9 million. This calls for a 32.3% decline from the year-ago quarter’s revenues of $643.4 million.
Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues, which is likely to have negatively impacted Marvell’s overall financial performance in the to-be-reported quarter. Moreover, continued inventory correction actions by customers are likely to have hurt the division’s overall performance.
The company had forecasted overall Enterprise Networking revenues to decline sequentially by more than 10%. Our estimate for the segment’s second-quarter revenues is pegged at $326.2 million, indicating a year-over-year decline of 4.1%.
For the overall Carrier Infrastructure end market, the company assumes that revenues are likely to have declined in the mid-single-digits sequentially due to continued inventory digestion in the wired end market. Our estimate suggests that the division’s second-quarter revenues are likely to decline 2.9% year over year to $277 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.
Though Marvell currently carries a Zacks Rank #2, it 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, Workday WDAY, PagSeguro Digital PAGS and Science Applications International SAIC have the right combination of elements to post an earnings beat in their upcoming releases.
Workday sports a Zacks Rank #1 and has an Earnings ESP of +1.82%. The company is scheduled to report second-quarter fiscal 2024 results on Aug 24. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 13.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Workday’s second-quarter earnings stands at $1.25 per share, 50.6% higher than the year-ago quarter. It is estimated to report revenues of $1.77 billion, which suggests an increase of approximately 15.5% from the year-ago quarter.
PagSeguro carries a Zacks Rank #2 and has an Earnings ESP of +6.93%. The company is anticipated to report second-quarter 2023 results on Aug 24. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 36.7%.
The Zacks Consensus Estimate for PAGS’ second-quarter earnings is pegged at 25 cents per share, indicating a year-over-year decline of 46.8%. The consensus mark for revenues stands at $689.4 million, suggesting a year-over-year decrease of 13.2%.
Science Applications is anticipated to report second-quarter fiscal 2024 results on Sep 7. The company has a Zacks Rank #3 and an Earnings ESP of +5.00% at present. Science Applications’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.5%.
The Zacks Consensus Estimate for SAIC’s second-quarter earnings is pegged at $1.60 per share, suggesting a decline of 8.6% from the year-ago quarter’s earnings of $1.75. Science Applications’ quarterly revenues are estimated to decrease 7.6% year over year to $1.69 billion.
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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
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