Marvell (MRVL) to Report Q4 Earnings: What's in the Cards?

Marvell Technology MRVL is slated to release fourth-quarter fiscal 2023 results on Mar 2.

For the fiscal fourth quarter, the company projects total revenues of $1.4 billion (+/- 5%). The company projects non-GAAP earnings per share for the fourth quarter to be approximately 46 cents (+/- 5 cents).

The Zacks Consensus Estimate for revenues is pegged at $1.40 billion, indicating an increase of 4.3% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 46 cents per share, implying a year-over-year decrease of 8%.

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 1.13%.

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 fourth-quarter performance is likely to have benefited from the solid demand for its products across the enterprise networking, carrier infrastructure end market and the combined auto & industrial end market in the United States and other regions. The strong adoption of 5G is likely to have favored MRVL’s wireless end-market performance, boosting its overall carrier end-market revenues in the fourth 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 fourth quarter. The combined automotive and industrial businesses are likely to have put up an impressive show in the quarter under review.

Nonetheless, excess inventory levels at original equipment manufacturers (OEMs) are likely to have hurt the overall demand for Marvell’s products. On its third-quarter fiscal 2023earnings call the company stated that customers are pushing out shipments and rescheduling orders to manage inventory levels amid the softening demand environment.

Furthermore, the weakening demand from Chinese customers amid the changing macroeconomic environment is likely to have impacted Marvell’s overall performance in the fourth quarter. On the third-quarterearnings call MRVL stated that it forecasts fourth-quarter revenues from OEM customers in China to decrease by more than one-third compared with the second quarter.

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.

Marvell currently carries a Zacks Rank #3 and 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, Splunk SPLK, CrowdStrike CRWD and Broadcom AVGO have the right combination of elements to post an earnings beat in their upcoming releases.

Splunk carries a Zacks Rank #2 and has an Earnings ESP of +0.39%. The company is slated to report fourth-quarter fiscal 2023 results on Mar 1. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 222%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Splunk’s fourth-quarter earnings stands at $1.11 per share, implying a year-over-year increase of 68.2%. It is estimated to report revenues of $1.07 billion, which suggests an increase of 19% from the year-ago quarter.

CrowdStrike carries a Zacks Rank #3 and has an Earnings ESP of +2.33%. The company is scheduled to report fourth-quarter fiscal 2023 results on Mar 7. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 34.6%.

The Zacks Consensus Estimate for CRWD’s fiscal fourth-quarter earnings is pegged at 43 cents per share, indicating a year-over-year increase of 43.3%. The consensus mark for revenues stands at $624.7 million, suggesting a year-over-year increase of 44.9%.

Broadcom is slated to report first-quarter fiscal 2023 results on Mar 2. The company has a Zacks Rank #3 and an Earnings ESP of +1.36% at present. AVGO’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.4%.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $10.16 per share, suggesting an increase of 21.1% from the year-ago quarter’s earnings of $8.39. Broadcom’s quarterly revenues are estimated to increase 15.4% year over year to $8.89 billion.

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

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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.