Marvell Technology Group (NASDAQ:MRVL) is expected to report Q1 earnings after the market close on Thursday, May 20, with a conference call scheduled for 4:45 pm ET.
The consensus estimate is 37c for EPS and $845.29M for revenue, according to First Call.
Credit Suisse expects Marvell to post upside to Q1 estimates with revenues at or slightly above the high end of company guidance of $825M-$860M, or flat to up, or down 2% quarter-over-quarter. Credit Suisse is currently modeling $843M for Q1 with upside from a pick up in mobile/wireless and modest HDD share gains. Credit Suisse expects the gross margin to be in-line with the approximate 59.7% guidance provided, and 2c-4c upside to their 38c EPS estimate. Looking forward: Credit Suisse expects upside to their Q2 estimates of $855M, or up 2% q/q, and 35c for EPS. Consensus is $864M and 36c.
While management may guide conservatively, Credit Suisse believes upside to their estimates could come from market share gains in storage, which is 51% of revenues, from HDD controller ramps at Seagate (NASDAQ:STX), and Hitachi. Wireless growth is anticipated from smartphone combo chips and apps processor ramps in smartphones, as well as a pick up in enterprise networking.