Marvell Tech reports earnings December 4

MRVL
About Marvell Technology Group Ltd.

Marvell Technology designs integrated circuits primarily for data storage, networking, and communications. Historically, the firm focused on storage, where it is still a key supplier to HDD and SSD makers but has strategically emphasized networking to offset declining HDD technology. The firm has since diversified and supplies chips to the networking and consumer electronic spaces. Marvell outsources its production to third-party foundries.

  • Last Price:
    $15.35
  • Previous Close:
    $15.44
  • Change:
    $-0.09 (-0.58%)
  • Open:
    $15.40
  • Volume:
    11,557,010
  • Average Volume (100 Day):
    10,681,786
  • Market Capitalization:
    $10.1 B
  • Day's Range:
    $15.19 - $15.70
  • Dividend Yield:
    1.55%
  • 52-week Range:
    $25 - $14.69
  • P-E:
    55.10
  • EPS:
    $0.28
  • Earnings Date:
    3/14/19
  • Ex Dividend Date:
    10/1/18
  • Sector:
    Technology
  • Industry:
    Semiconductors
  • Analyst Average Recommendation:
    Strong Buy

What's Happening With MRVL View more about MRVL >

Marvell Technology (MRVL) reports third-quarter results December 4. The company will report its quarterly numbers after the market close with the consensus calling for earnings of $0.32 per share. During the same period last year the company earned $0.34 and the stock has lost 25% year to date.

Technical Analysis

MRVL was recently trading at $16.07 down $9.11 from its 12-month high and $1.38 above its 12-month low. InvestorsObserver’s Stock Score Report gives MRVL a 18 long-term technical score and a 29 short-term technical score. The stock has recent support above $14.5 and recent resistance below $17.5. Of the 15 analysts who cover the stock 13 rate it Strong Buy, 0 rate it Buy, 2 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, MRVL gets a score of 48 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

MRVL has been losing value all year and the stock continues to search for support ahead of the upcoming report. Last quarter the company reported better than expected sales, but earnings fell short of estimates which spooked the market. MRVL was incredibly hot in 2016 and 2017, but analysts fear a slowdown in semiconductor demand, partially as a result of the ongoing trade war between the U.S. and China. MRVL has lost enough market share that it does appear to be undervalued at this point with a forward P/E of just 10.4. Earnings are expected to drop this quarter versus the same period last year, but for the full year profits are expected to rise 5.9% and analysts expect the company to grow earnings by 14.1% per annum over the next five years. If the company is able to keep pace with future estimates the growth is more than enough to drive the stock higher given its current valuation, but the company has to hit or exceed estimates or the market will be quick to drive shares lower. The street is not expecting a beat this quarter, with a whisper number of 30 cents for the quarter, which would be a two-penny loss. The good news is that the potential earnings miss has already been priced into the stock, so the stock can withstand a slight miss this quarter, and any positive surprise could result in a quick rally given how much negativity has been priced in. MRVL trades at $16.07 with an average price target of $26.27.

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