Why Marvell (MRVL) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Marvell Technology (MRVL) is positioned to continue its earnings-beat streak, having surpassed earnings estimates in its last two reports with an average beat of 5.47% [1][3]. Earnings Performance - In the most recent quarter, Marvell reported earnings of $0.43 per share, exceeding the expected$0.40 per share by a surprise of 7.50% [2]. - For the previous quarter, the company reported $0.30 per share against an expectation of$0.29 per share, resulting in a surprise of 3.45% [2]. Earnings Estimates and Predictions - Estimates for Marvell have been trending higher due to its history of earnings surprises, with a current Earnings ESP of +2.77%, indicating increased analyst optimism about its near-term earnings potential [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat in the upcoming report [6]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better achieve a positive surprise nearly 70% of the time, implying a high probability of beating consensus estimates [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]. Importance of Earnings ESP - The Earnings ESP metric is crucial for predicting earnings performance, as a negative value can reduce its predictive power, but does not necessarily indicate an earnings miss [7]. - It is recommended to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [8].