Chip Stocks Brace For Marvell & National Semi Earnings (NSM, MRVL)

By now, we’ve seen most major tech earnings and we’ve already seen most major chip earnings.  If it was a movie, the last earnings and guidance would be called "The Poor and the Fair" or something of the like.  On Thursday afternoon we’ll get to see two more key semiconductor earnings.  Late this coming week, we’ll see earnings out of both Marvell Technology Group Ltd. (NASDAQ: MRVL) and National Semiconductor Corp. (NYSE: NSM).

On Thursday afternoon we’ll get to see earnings out of Marvell Technology Group Ltd. (NASDAQ: MRVL). The estimates for the semiconductor company from First Call are $0.11 EPS on $782.36 million in revenues.  Next quarter estimates are $0.13 EPS on $764.99 million in revenues. Estimates for fiscal Jan-2009 are $0.69 EPS on $3.32 billion in revenues.  Analysts have an average price target north of $17.00, well down from the old highs.  One thing we would like to note was that over the last two weeks there had been some very unusual stock options activity.  One rumor pointed to earnings, and one to a possible buyout.  Until news is news rather than hearsay, we’ll treat it lightly until the facts are out.  Marvell Technology Group’s 52-week trading range is $9.77 to $20.84.  Marvell has some 32.8 million shares in the short interest, and at the lower rungs of the trading range this one has a potential of making a major move if it can ever show any good news.

Also, on Thursday afternoon we’ll get to see earnings out of National Semiconductor Corp. (NYSE: NSM). The estimates for the semiconductor company from First Call are $457.42 million in revenues.  Next quarter estimates are $472.45 million in revenues. Estimates for fiscal May-2008 are $1.9 billion in revenues.  We had some real discrepancies on the earnings numbers, so we’ll make an update before the Thursday information.  Analysts have an average price target north of $22.00, well down from the old highs.  National Semiconductor’s 52-week trading range is $16.73 to $29.69.  Traders still sometimes try to tie National Semi as a key chip stock that affects many others, although we think those days are close to a decade ago.

Jon C. Ogg
March 1, 2008