Marvell Tech Set For Earnings (MRVL, BRCM)

After today’s close we’ll get earnings out of Marvell Technology Group Ltd. (NASDAQ:MRVL).  The company is expected to post $0.06 EPS on revenues of $645.5 million according to First Call.  The coming quarter is expected to have $0.10 EPS on $693 million.

Analysts are still quite positive on the price targets and average price targets are north of $22.00.  The only issue is that the analysts who have covered the stock this year have lightened up on their official ratings on the stock.  Options traders appear to be braced for a 3.5% to 4% move in either direction today on a static basis.  It also has over 60,000 contracts in the open interest of the SEP-07 $17.50 Calls, which is equal to more than 6 million shares on a fully leveraged basis.

Since May, shares are up about 8% from $16.38 on the May 1 close.  It should be noted that shares did hit under $16.00 at the end of May and shares ran to over $19.00 in July. The 52-week trading range is $15.25 to $21.85 and shares are still down about 50% from the early 2006 highs.  Broadcom (NASDAQ:BRCM) is the most frequently paired stock with Marvell, although Broadcom is nearly twice its size in market cap.  Marvell has also regained all of its NASDAQ listing requirements, so we should get a cleaner earnings report than in many past quarters and here is a full summary of its ‘caught up’ financial filings it previously gave.

Jon C. Ogg
August 23, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.