14:41 MRVL Earnings Preview: Marvell (17.02 -0.02) -Update-
MRVL is scheduled to report Q1 results (revs only) tonight after the close, with analysts looking for $645.36 mln in revs... Amtech anticipates revs near the midpoint of its guidance range of $640-650 mln (they are at $645 mln). Due to the ongoing options investigation, MRVL will not likely report full financials; however, they believe restatements will be within a few weeks with the internal options investigation completed. The firm is buyers of MRVL shares at these levels as they find the risk-reward favorable at 17.5x CY08 EPS with bad news priced in, declining inventory, and improving fundamentals... Deutsche Bank believes MRVL's Q1 likely to be weaker than $640-645 mln guidance and guide Q2 flat to up slightly vs St up 6%, and the firm up 2%. However, given valuations, the impact of positive seasonality in storage in 2H:07, and GM upside potential from XScale, they believe that MRVL will see significant upside in 2H07. They believe that Q2 will be the last estimate cut (by the firm or the co) and positive seasonality in storage in 2H07 will cause upside vs significantly lowered expectations. The firm also believes the majority of uncertainties related to mgmt have passed and the co should resume its growth in 2H07... Jefferies expects CQ1 results and CQ2 rev below St. They believe storage was likely down Q/Q due to a seasonal decline in consumer and the well known weakness in the desktop and laptop market. Although they do not anticipate Marvell to report EPS, they believe CQ1 EPS was $0.07, below St. of $0.09. They believe the co will guide Q2 rev to roughly $650-$660 mln. Click here for technical levels of interest.
