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Marvell (MRVL) to Report Q3 Earnings: What's in the Offing?

Marvell Technology MRVL is scheduled to report third-quarter fiscal 2023 results on Dec 1.

The company projects revenues of $1.560 billion (up or down up to 3%) for the fiscal third quarter. The Zacks Consensus Estimate for revenues is pegged at $1.56 billion, suggesting growth of 28.6% from the year-ago period.

Marvell expects non-GAAP earnings per share to be approximately 59 cents (+/- 3 cents). The consensus mark of 59 cents is in line with Marvell’s forecast. The bottom line is expected to increase 37.2% year over year.

Marvell surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.3%.

 

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 third-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 the last quarter conference call, Marvell stated that it anticipates approximately 29% year-over-year revenue growth for the third quarter, driven by the substantial contribution from the cloud data center end market, carrier infrastructure end market, enterprise networking end market, and combined auto & industrial end market in the United States and other regions.

Strong adoption of 5G is likely to have favored Marvell’s wireless end-market performance, boosting the company’s overall carrier end-market revenues in the third quarter.

Record bookings from data infrastructure end markets and multiple Ethernet design wins for upcoming vehicles are anticipated to have driven revenues significantly in the fiscal third quarter. The combined automotive and industrial businesses are likely to have put up an impressive show in the quarter under review.

However, certain ongoing supply-chain challenges are likely to curb Marvell’s ability to fully meet the increase in demand for some of its product offerings. The company expects a sequential increase in its fiscal fourth-quarter top line with the ramp-up of new products and improvement of supply conditions.

In the fiscal third quarter, Marvell expects non-GAAP gross margin of 65% (+/- 0.25%), while non-GAAP operating expenses are estimated in the range of $435-$440 million.

What Our Model Unveils

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 -2.68%. 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, Dollar General DG, MongoDB MDB and Okta OKTA are some stocks that investors can consider, as these have the right combination of elements to post an earnings beat in their upcoming releases.

Dollar General has an Earnings ESP of +1.58% and currently carries a Zacks Rank #2. The company is slated to report its third-quarter fiscal 2023 results on Dec 1. DG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 2.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dollar General’s fiscal third-quarter earnings stands at $2.55 per share, implying a year-over-year increase of 22.6%. DG is estimated to report revenues of $9.43 billion, which suggests a surge of 10.7% from the year-ago quarter.

MongoDB has an Earnings ESP of +1.66% and a Zacks Rank #3. The company is scheduled to report its third-quarter fiscal 2023 results on Dec 6. MDB’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 113.7%.

The Zacks Consensus Estimate for MDB’s fiscal third-quarter loss is pegged at 17 cents per share, indicating a 54.6% fall from the year-ago quarter’s loss of 11 cents. The consensus mark for revenues stands at $302.4 million, suggesting a year-over-year increase of 33.3%.

Okta has an Earnings ESP of +0.71% and carries a Zacks Rank #3 at present. The company is set to report its third-quarter fiscal 2023 results on Nov 30. OKTA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%.

The Zacks Consensus Estimate for quarterly loss is pegged at 24 cents per share, suggesting a year-over-year decrease of 242.9%. OKTA’s quarterly revenues are estimated to increase 32.2% year over year to $463.6 million.

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

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Dollar General Corporation (DG) : Free Stock Analysis Report

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Okta, Inc. (OKTA) : Free Stock Analysis Report

MongoDB, Inc. (MDB) : Free Stock Analysis Report

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