Q3 Preview: Industry Gets Another Look at Potential Impacts from Thai Flooding with Marvell (MRVL)
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Price: $237.04 -5.57%
Rating Summary:
49 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
49 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Shares of Marvell Technology (Nasdaq: MRVL) are trading down about 6.3 percent Thursday, just hours ahead of the company's third-quarter 2012 earnings release following the closing bell.
The third quarter conference call is scheduled for 4:45pm ET; Dial-In: 1-800-659-2032 or 1-617-614-2712, pass-code 64240159.
The Wall Street consensus predicts Marvell will report earnings around $0.39 per share on $938.96 million in sales. For the third quarter of fiscal 2011, the company reported non-GAAP earnings of $0.45 per share on $959 million in total sales.
28 analysts rate shares of Marvell as a Buy, while eight rate the stock a Hold and one encourages investors to sell. The average price target on shares of MRVL is $17.75 with a range from $12.50 to $22.
JPMorgan is forecasting Marvell will announce earnings which are below the consensus due to the HDD shortfall. The firm estimates the company will report earnings of $0.37 per share for the quarter on $945 million in total sales. Although JPMorgan believes the TD smartphone ramps will drive substantial growth for 2012, the company’s 46-48 percent exposure to HDD will weigh heavily given the flooding in Thailand. JPMorgan suspects that growth and volumes should resume to normal levels in the first half of 2012
An analyst at JPMorgan said, “We believe the market has discounted most of the near-term weakness and we expect the stock to move higher on continued customer diversification in mobile/wireless and their storage business.”
For the fourth quarter, JPMorgan is estimating management will offer a guidance range of $760-$810 million and earnings close to $0.26 per shares. Going into earnings, the firm is maintaining its Overweight rating and $18.50 price target.
Kaufman Bros. is slightly bullish on Marvell going into the report, modeling for earnings of $0.41 per share and sales of $952 million. The firm is anticipating strong sales and growth from all of the company’s segments except for HDD's. Looking ahead into the fourth quarter, the firm is estimating earnings of $0.28 per share on $803 million in sales due to a continued slowdown in HDD. Kaufman currently has a Buy rating and $18 price target on shares of MRVL.
Deutsche Bank is reiterating its Buy rating and $18 price target, and is adjusting its estimates due to the flooding in Thailand. The firm now estimates total sales of $940 million and earnings of $0.38 per share, down from its previous estimates of $950 million and $0.40 per share. Deutsche believe the flooding will negatively impact fourth quarter results as well, and has adjusted its sales and earnings estimates to $720 million and $0.18 per share.
An analyst at Deutsche commented, “Although the flood impact is temporary, it is likely to be severe in the near term. Nonetheless, we believe MRVL is well positioned to benefit from a recovery in HDD production in 2012, should gain share in HDDs overall and carries an attractive valuation even on reduced estimates.”
DA Davidson is cutting its price target from $21 to $19 going into earnings, but maintains its Buy rating due to the company’s long term outlook. The firm highlights that Western Digital (NYSE: WDC) accounted for roughly 21 percent of Marvell’s total sales last quarter and is expecting the Thailand flood to weigh on the company’s earnings for the next couple of quarters following statements by WDC’s management team. The firm believes shipments will fall by 50 percent quarter over quarter and sales will not pick back up until the second quarter of fiscal 2013.
“The loss in sales from the disaster in Thailand will undoubtedly hurt the company financially, but it should be cushioned by strong wireless sales. We believe Wireless is expected to grow greater than double-digit sequentially, as the company continues to ramp with several OEMs for the China Mobile (NYSE: CHL) Ophone,” according to an analyst.
For the third quarter, DA Davidson estimates earnings of $0.39 on total sales of $943.6 million. For the fourth quarter, the firm’s analysts see earnings of $0.26 on $826.8 million in sales.
The third quarter conference call is scheduled for 4:45pm ET; Dial-In: 1-800-659-2032 or 1-617-614-2712, pass-code 64240159.
The Wall Street consensus predicts Marvell will report earnings around $0.39 per share on $938.96 million in sales. For the third quarter of fiscal 2011, the company reported non-GAAP earnings of $0.45 per share on $959 million in total sales.
28 analysts rate shares of Marvell as a Buy, while eight rate the stock a Hold and one encourages investors to sell. The average price target on shares of MRVL is $17.75 with a range from $12.50 to $22.
JPMorgan is forecasting Marvell will announce earnings which are below the consensus due to the HDD shortfall. The firm estimates the company will report earnings of $0.37 per share for the quarter on $945 million in total sales. Although JPMorgan believes the TD smartphone ramps will drive substantial growth for 2012, the company’s 46-48 percent exposure to HDD will weigh heavily given the flooding in Thailand. JPMorgan suspects that growth and volumes should resume to normal levels in the first half of 2012
An analyst at JPMorgan said, “We believe the market has discounted most of the near-term weakness and we expect the stock to move higher on continued customer diversification in mobile/wireless and their storage business.”
For the fourth quarter, JPMorgan is estimating management will offer a guidance range of $760-$810 million and earnings close to $0.26 per shares. Going into earnings, the firm is maintaining its Overweight rating and $18.50 price target.
Kaufman Bros. is slightly bullish on Marvell going into the report, modeling for earnings of $0.41 per share and sales of $952 million. The firm is anticipating strong sales and growth from all of the company’s segments except for HDD's. Looking ahead into the fourth quarter, the firm is estimating earnings of $0.28 per share on $803 million in sales due to a continued slowdown in HDD. Kaufman currently has a Buy rating and $18 price target on shares of MRVL.
Deutsche Bank is reiterating its Buy rating and $18 price target, and is adjusting its estimates due to the flooding in Thailand. The firm now estimates total sales of $940 million and earnings of $0.38 per share, down from its previous estimates of $950 million and $0.40 per share. Deutsche believe the flooding will negatively impact fourth quarter results as well, and has adjusted its sales and earnings estimates to $720 million and $0.18 per share.
An analyst at Deutsche commented, “Although the flood impact is temporary, it is likely to be severe in the near term. Nonetheless, we believe MRVL is well positioned to benefit from a recovery in HDD production in 2012, should gain share in HDDs overall and carries an attractive valuation even on reduced estimates.”
DA Davidson is cutting its price target from $21 to $19 going into earnings, but maintains its Buy rating due to the company’s long term outlook. The firm highlights that Western Digital (NYSE: WDC) accounted for roughly 21 percent of Marvell’s total sales last quarter and is expecting the Thailand flood to weigh on the company’s earnings for the next couple of quarters following statements by WDC’s management team. The firm believes shipments will fall by 50 percent quarter over quarter and sales will not pick back up until the second quarter of fiscal 2013.
“The loss in sales from the disaster in Thailand will undoubtedly hurt the company financially, but it should be cushioned by strong wireless sales. We believe Wireless is expected to grow greater than double-digit sequentially, as the company continues to ramp with several OEMs for the China Mobile (NYSE: CHL) Ophone,” according to an analyst.
For the third quarter, DA Davidson estimates earnings of $0.39 on total sales of $943.6 million. For the fourth quarter, the firm’s analysts see earnings of $0.26 on $826.8 million in sales.
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