Buy or Sell MRVL Stock Ahead of Its Earnings?

Core Viewpoint - Marvell Technology is expected to report improved earnings and sales compared to the previous year, but historical trends indicate a tendency for negative one-day returns following earnings announcements [2][3]. Financial Performance - Current consensus estimates project Marvell Technology to report earnings of $0.61 per share on sales of $1.88 billion, a significant increase from the previous year's earnings of $0.24 per share on sales of $1.16 billion [2]. - The company has a market capitalization of $55 billion and generated $5.8 billion in revenue over the last twelve months, but reported operational losses of -$366 million and a net income of -$885 million [3]. Historical Earnings Trends - Marvell Technology has experienced negative one-day returns following earnings announcements in 62% of instances, with a median decline of -5.9% and a maximum drop of -19.8% [2][7]. - Over the last five years, there have been 16 earnings data points recorded, with 6 positive and 10 negative one-day returns, resulting in positive returns approximately 38% of the time [7]. Trading Strategies - Traders may consider adjusting their positions prior to earnings releases based on historical odds, or analyze correlations between immediate and medium-term returns post-announcement to inform their strategies [6]. - A relatively less risky strategy involves understanding the correlation between short-term and medium-term returns post-earnings to execute appropriate trades [5][6].