What Awaits Marvell Technology (MRVL) In Q4 Earnings?
Zacks Investment Research | Jul 17, 2016 09:30PM ET
Marvell Technology Group Ltd. (NASDAQ:MRVL) is set to report fourth-quarter fiscal 2016 results on Jul 19, 2016. Let's see how things are shaping up for this announcement.
Factors at Play
Marvell posted lower-than-expected third-quarter fiscal 2016 results. Not only did it post a loss but the top line also compared unfavorably with the Zacks Consensus Estimate. Also, revenues fell on a year-over-year basis mainly due to lower revenues from its networking business and soft performance in the storage end markets.
Though the macro headwinds and stringent regulations might put the company's financials under pressure, we believe that strong demand for Marvell’s 4G LTE products could be a growth driver. This will be supplemented with growth from the company’s wide range of newly-launched Internet of Things (IoT) solutions.
Moreover, Marvell is a promising player in the solid state drive (SSD) controllers market. Over the coming years, it expects an increasing number of PCs/servers to use flash-based solid state technology for storage. SSD demand will also increase and could even surpass manufacturing capacity, leading to periodic shortage and higher pricing in the to-be reported quarter. Marvell is benefiting from growing demand for SSD products.
However, competition in the semiconductor market from major players such as Intel Corp. (NASDAQ:INTC) and Texas Instruments (NASDAQ:TXN) Inc. remains a headwind.
Earnings Whispers
Our proven model does not conclusively show that Marvell will beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.