Marvell Technology to Release 4th-Quarter Results
- By Alberto Abaterusso
It is time for earnings announcement at Marvell Technology Group Ltd. (MRVL) again. The semiconductor company will release the financial results for the last three months reporting period of fiscal 2018 after the closing bell on Thursday.
Marvell Technology is forecast to close the quarter with a net profit of 31 cents per share of the company.
Warning! GuruFocus has detected 5 Warning Signs with MRVL. Click here to check it out.
The intrinsic value of MRVL
Source: Yahoo Finance
This forecast - a mean of twenty-three 31 cents to 32 cents ranging estimates - is a hefty 41% upside from one-year ago earnings per share of 22 cents.
The estimates on earnings are based on 21 predictions on fourth-quarter revenue, ranging from a low of $610 million and a high of $620.3 million.
Source: Yahoo Finance
On average, analysts project the fourth quarter revenue to $610.99 million (+6.90% from the comparable of fiscal 2017) and full fiscal 2018 revenue to $2.41 billion (+4% from full fiscal 2017).
The chart below illustrates the trend in Marvell Technology's fourth quarter and full year revenues over the last five reporting periods:
Concerning the past ability of the company to stay profitable and grow, GuruFocus has rated it with a score of 6 out of 10.
In the near future, analysts believe Marvell Technology's net profit margin will jump to 24.5% in 2018 and to 26% in 2019. Compared to 2017, predictions on the company's net profit margin for 2018 and 2019 represent an increase of respectively 11 and 12.6 percentage points.
From 2018 to 2019, the bottom line of the company is predicted to grow 10.1% and predictions for the following five years period are for an average 22.45% annual growth.
On Thursday, the company will also provide its shareholders with updated figures of the balance sheet that, as of the most recent quarter, is characterized by a total amount of $1.73 billion available in cash on hand and securities or $3.53 per share of the company.
GuruFocus assigns a financial strength rating of 4 out of a total of 10.
Marvell Technology reports a volume of 495.79 shares outstanding. Of this total, about 59.58% is held by institutions while the portion of insider ownership equals 0.48%, according to GuruFocus..
Among the community of top institutional holders,shareholders with the highest number of shares include Price (T.Rowe) Associates Inc. with 8.55%. Price is followed by Starboard Value LP and Vanguard Group, Inc. Both holders have 6.86% stake in Marvell Technology. Figures are as of Dec. 30, 2017.
Marvell Technology's current share price is $23.42. The company has a market capitalization of $11.61 billion, a price-book (P/B) ratio of 2.83 times versus an industry median of 1.88 times and price-earnings (P/E) ratio of 30.42 times versus an industry average of 21.20 times.
As of March 2018, analysts' recommendations on Marvell Technology are between a hold and a buy approach.
(Disclosure:I have no positions in any security mentioned in this article).
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 5 Warning Signs with MRVL. Click here to check it out.
The intrinsic value of MRVL