Marvell Technology Group Ltd.
) is set to report second-quarter fiscal 2015 results on Aug 21.
Last quarter, the company posted a negative earnings surprise of
4.55%. Let us see how things are shaping up for this
Factors to Consider This Past Quarter
Marvell delivered mixed first-quarter results wherein the top
line beat the Zacks Consensus Estimate, while the bottom line
missed the same. Revenue contributions from end markets were higher
than expected and increased both sequentially and on a
year-over-year basis. Moreover, the company provided encouraging
We believe that the strong demand for Marvell's 4GLTE products
could drive growth in the forthcoming quarters. Additionally, the
company's wide range of recently launched Internet of Things
solutions is expected to boost growth. We also remain positive on
Marvell's diverse revenue base and stable balance sheet.
Nonetheless, competition in the semiconductor market from major
players such as Intel Corp. (
) and Texas Instruments remains a headwind.
Our proven model does not conclusively show that Marvell will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 22 cents. Hence, the difference is 0.00%.
: Marvell's Zacks Rank #3 (Hold) when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are a couple of other companies, which you may consider as
our model shows that they have the right combination of elements to
post an earnings beat this quarter:
Abercrombie & Fitch Co. (
), with an Earnings ESP of +20.00% and a Zacks Rank #2 (Buy).
Dollar Tree, Inc. (
), with an Earnings ESP of +7.69% and a Zacks Rank #3.
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