A Key Stock Is Down Just Before Releasing Earnings Report

Marvell Technology (MRVL), maker of networking chips, is releasing its Q1 earnings report on Thursday afternoon. Here is what you need to know.

The stock is down 2.18% right now, priced at $76 a share. That is slightly higher than its average for 2024, but not significantly. The stock is not due for correction soon and has not had a significant upswing recently, and it will need to rely solely on the data for the earnings report to do well tomorrow.

For the previous quarter, Marvell earned $1.43 billion, which was actually right in line with what it earned the previous year for the same quarter. The company issued its forecast for the next quarter and did not impress its shareholders with its estimates.

Analysts anticipate that Marvell will fall a bit this quarter, with earnings around $1.16 billion and a decline of 12.1% from the previous year. The earnings per share are expected to be about $0.24.

Should You Buy Marvell Stock?

We expect the company to hit its earnings forecasts, as it has almost consistently done so, which would leave it with another underwhelming quarter. That should cause the stock price to dip once more, and we suggest investors consider buying in then.

This is not a consistently high performing stock, so investors should take caution, but there is potential for the company to grow further on into the year. Marvell stock is risky right now and has only a low chance of making back money for investors in the near future.

Our recommendation would be to sit back and see what it does after the quarterly earnings report to make your move. You are unlikely to miss out on a price surge by holding back on this stock for now. With inflation high and then inflation fears likely to be reinforced by FOMC member statements this week, Marvell is going to have an uphill battle if the earnings report is anything other than very positive.  

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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