Marvell Technology, Inc. ($MRVL) Earnings (Q2 FY23)

 Marvell Technology, Inc. ($MRVL) Earnings and Opinion:


Marvell Technology is a company in the Technology industry and operates in the semiconductors industry. The company designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. Marvell Technology was incorporated in 1995 and is currently headquartered in Wilmington, Delaware. The company made its debut on the stock market in 2000.

Marvell Technology Earnings Results:

  • Revenues of $1.517B missing expectations of $1.518B
  • Gross Profit of $986M missing expectations of $991M
  • Operating Income of $554M missing expectations of $556M
  • Adjusted EPS of $0.57 beating expectations of $0.56
  • Cash from Operations of $332M missing expectations of $505M
  • Inventories of $913M beating expectations of $850M
  • Guidance for Q3 FY23 missed on all metrics
Opinion:
Marvell Technology is moving slightly lower after the earnings report. The company had a mixed earnings report, but the CEO said that they should see revenue growth as the supply constraints ease. I don't know how much this company is affected by the CHIPS act, but as a semiconductor company, they may get some incentives. The United States is trying really hard to boost semiconductor production in house. Marvell can boost its name in this way. Looking at the earnings, the misses were all really slight, and they were able to beat on EPS. Guidance is low, but they are expecting to pick back up with some sort of normalcy in Q4. As far as valuation goes, the P/S ratio is high at 9.70. The profitability is in the middle right now, they are on the borderline, but are looking to become profitable the whole time. Revenue growth is decent, with some falling and fluctuation. Current ratio sits at 1.67, which is comfortable. However, debt overwhelmingly outweighs cash, which isn't the best sign. In my opinion, I have a knack for semiconductor stocks. I think the potential for them to grow is so big, especially after the incentives given in the CHIPS act. With a lot of pressure on the performance of these companies to keep the production in house. It will be interesting to see how Marvell handles all of this. I think the company looks solid, and there is definitely some upside with it. It has a unique business model, but when supply chains turn back to normal, the business should thrive. I am long Marvell.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, Motley Fool, CSI Market

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more