Marvell Technology MRVL is scheduled to report third-quarter fiscal 2025 on Dec. 3.
Marvell projects total revenues for the fiscal third quarter of $1.45 billion (+/- 5%). The Zacks Consensus Estimate for revenues is pegged at $1.45 billion, which indicates an increase of 2.5% from the year-ago quarter’s reported figure.
MRVL anticipates non-GAAP earnings to be in the band of 35-45 cents per share (+/- 5 cents) for the third quarter. The consensus mark for non-GAAP earnings is pegged at 40 cents, which calls for a 2.4% decline from the year-ago quarter.
In the trailing four quarters, MRVL’s earnings surpassed the Zacks Consensus Estimate thrice and matched once, with an average surprise of 2.6%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Factors to Consider for MRVL
Marvell’s overall third-quarter fiscal 2025 revenues are likely to have benefited from improved performances across all its end markets, fueled by robust momentum in the Data Center market. Our estimate for the Data Center division’s third-quarter revenues is pegged at $1.04 billion, which suggests 18.5% sequential growth.
Strong demand for electro-optics products, custom silicon and switches, combined with surging bookings for its market-leading 800 gig PAM products and 400ZR data center interconnect (DCI) solutions, is expected to have boosted top-line growth for the upcoming quarter.
Marvell Technology, Inc. Price and EPS Surprise
Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. Quote
Significant progress in MRVL’s CXL technology, accelerated investments in artificial investment and strong leadership in PAM technology are expected to have benefited its third-quarter performance. The latest integration of MRVL's FIPS 140 Level-3 compliant liquid security hardware modules in Microsoft’s Azure Key Vault offerings is likely to have been a major positive for the upcoming quarter.
Improved inventory corrections and a modest rise in the demands of next-generation 5 nanometer-based OCTEON 10 DPUs are expected to have benefited its Networking and Carrier end markets. Our third-quarter revenue estimates for Enterprise Networking and Carrier end markets are pegged at $158.7 million and $79.6 million with a sequential rise of 5.1% and 4.9%, respectively.
Notably, MRVL’s anticipated ramp in gaming inventory corrections is likely to have benefited the Consumer end market in the third quarter of fiscal 2025. Our model estimates for the Consumer end markets are pegged at $89.9 million, indicating a 1.1% increase from the previous quarter’s reported figure.
Additionally, improvement in inventory level is expected to have driven the results for Automotive and Industrial end markets in the to-be-reported quarter. Our model estimates for the Automotive/Industrial end market are pegged at $79.9 million, indicating a 4.9% sequential improvement.
However, Marvell’s third-quarter performance is expected to have been hurt by softness in its product demand as enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
What Our Proven Model Says for MRVL’s Q3 Earnings
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
MRVL has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Rubrik Inc. RBRK has an Earnings ESP of +0.42% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is set to report third-quarter results on Dec. 5. The Zacks Consensus Estimate for RBRK’s third-quarter fiscal 2025 loss per share is pegged at 40 cents, unchanged over the past 60 days. RBRK shares have risen 34.2% year to date.
Pure Storage PSTG has an Earnings ESP of +2.98% and carries a Zacks Rank #3 at present.
It is set to report third-quarter fiscal 2025 results on Dec. 3. The Zacks Consensus Estimate for PSTG’s third-quarter fiscal 2025 earnings is pegged at 43 cents per share, unchanged over the past 60 days, indicating a loss of 14% from the year-ago quarter’s reported figure. PSTG shares have gained 48.3% year to date.
Hewlett Packard HPE has an Earnings ESP of +1.51% and carries a Zacks Rank #3 at present.
It is set to report fourth-quarter results on Dec. 5. The Zacks Consensus Estimate for HPE’s fourth-quarter 2024 earnings is pegged at 55 cents per share, unchanged over the past 60 days, indicating an improvement of 5.8% from the year-ago quarter’s reported figure. HPE shares have surged 22.5% year to date.
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