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Will Marvell (MRVL) Miss Earnings Estimates? - Analyst Blog

Posted: 11/18/2013 9:30:00 AM
Referenced Stocks: INTC;MRVL;TIVO;TSL

Marvell Technology Group Ltd. ( MRVL ) is set to report third quarter fiscal 2014 results on Nov 21. The company delivered a positive earnings surprise of 15.38% in the second quarter. Let's see how things are shaping up for this announcement.

Factors this Past Quarter

Marvell delivered solid second-quarter results wherein both the top and bottom line came ahead of the Zacks Consensus Estimate. Revenue contributions from the end markets were in line with expectations. Also, continuous share buybacks were a positive.

Marvell also provided encouraging third-quarter guidance. Marvell should do well in the longer-term, as the company expects mobile and wireless end markets to grow in double digits sequentially, driven by ramp up in its unified 3G platform for mobile and advanced wireless connectivity solutions. However, we remain concerned about stiff competition in the semiconductor market from major players such as Intel Corp. ( INTC ).

Earnings Whispers?  

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 Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP:   Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 17 cents. Hence, the difference is 0.00%.

Zacks Rank #4 (Sell): We caution against stocks with Zacks Ranks #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 some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

Trina Solar Limited ( TSL ), Earnings ESP of +77.78% and a Zacks Rank #2 (Buy)

TiVo Inc. ( TIVO ), Earnings ESP of +16.67% and a Zacks Rank #2 (Buy)

INTEL CORP (INTC): Free Stock Analysis Report

MARVELL TECH GP (MRVL): Free Stock Analysis Report

TIVO INC (TIVO): Free Stock Analysis Report

TRINA SOLAR LTD (TSL): Free Stock Analysis Report

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