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Will Marvell Technology Group (MRVL) Crush Estimates at Its Next Earnings Report?

Zacks

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Marvell Technology Group Ltd. MRVL, a firm in the Semiconductor-Communications space, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, MRVL has beaten estimates by at least 80% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, MRVL expected to post earnings of 6 cents per share, while it actually produced earnings of 11 cents per share, a beat of 83.3%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 5 cents per share, when it actually produced earnings of 15 cents per share, a beat of 200%.


Thanks in part to this history, recent estimates have been moving higher for Marvell Technology Group. In fact, the Earnings ESPfor MRVL is positive, which is a great sign of a coming beat.

MARVELL TECH GP Price and EPS Surprise

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for MRVL, as the firm currently has a Zacks Earnings ESP of 8.33%, so another beat could be around the corner.

This is particularly true when you consider that MRVL has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70%of the time, so it seems pretty likely that MRVL could see another beat at its next report, especially if recent trends are any guide.

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