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Marvell (MRVL) International Revenue Performance Explored
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Have you assessed how the international operations of Marvell Technology (MRVL - Free Report) performed in the quarter ended July 2024? For this chipmaker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of MRVL's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.27 billion, marking a decrease of 5.1% from the year-ago quarter. We will next turn our attention to dissecting MRVL's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into MRVL's International Revenue Trends
Of the total revenue, $95 million came from Thailand during the last fiscal quarter, accounting for 7.5%. This represented a surprise of +17.53% as analysts had expected the region to contribute $80.83 million to the total revenue. In comparison, the region contributed $65 million, or 5.6%, and $76 million, or 5.7%, to total revenue in the previous and year-ago quarters, respectively.
Japan generated $33.2 million in revenues for the company in the last quarter, constituting 2.6% of the total. This represented a surprise of +1.34% compared to the $32.76 million projected by Wall Street analysts. Comparatively, in the previous quarter, Japan accounted for $17.3 million (1.5%), and in the year-ago quarter, it contributed $44 million (3.3%) to the total revenue.
China accounted for 46.1% of the company's total revenue during the quarter, translating to $586.8 million. Revenues from this region represented a surprise of +5.24%, with Wall Street analysts collectively expecting $557.61 million. When compared to the preceding quarter and the same quarter in the previous year, China contributed $529.6 million (45.6%) and $569.3 million (42.5%) to the total revenue, respectively.
During the quarter, Singapore contributed $142.2 million in revenue, making up 11.2% of the total revenue. When compared to the consensus estimate of $80.08 million, this meant a surprise of +77.57%. Looking back, Singapore contributed $111.3 million, or 9.6%, in the previous quarter, and $70.9 million, or 5.3%, in the same quarter of the previous year.
During the quarter, Malaysia contributed $29.4 million in revenue, making up 2.3% of the total revenue. When compared to the consensus estimate of $42.04 million, this meant a surprise of -30.07%. Looking back, Malaysia contributed $53 million, or 4.6%, in the previous quarter, and $39.5 million, or 3%, in the same quarter of the previous year.
Taiwan generated $38.5 million in revenues for the company in the last quarter, constituting 3.0% of the total. This represented a surprise of +6.94% compared to the $36 million projected by Wall Street analysts. Comparatively, in the previous quarter, Taiwan accounted for $42.6 million (3.7%), and in the year-ago quarter, it contributed $59.1 million (4.4%) to the total revenue.
Revenue Forecasts for the International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Marvell will report a total revenue of $1.45 billion, which reflects an increase of 2.5% from the same quarter in the previous year. The revenue contributions are expected to be 6.2% from Thailand ($90.77 million), 2.3% from Japan ($33.44 million), 42.3% from China ($614.7 million), 6.3% from Singapore ($91.03 million), 3.3% from Malaysia ($47.21 million) and 2.3% from Taiwan ($34.01 million).
Analysts expect the company to report a total annual revenue of $5.49 billion for the full year, marking a decrease of 0.4% compared to last year. The expected revenue contributions from Thailand, Japan, China, Singapore, Malaysia and Taiwan are projected to be 6.2% ($338.77 million), 2.2% ($120.41 million), 43.8% ($2.4 billion), 7.1% ($390.63 million), 3.7% ($200.13 million) and 2.8% ($154.27 million) of the total revenue, in that order.
Concluding Remarks
The dependency of Marvell on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Over the past month, the stock has gained 20.3% versus the Zacks S&P 500 composite's 3.6% increase. The Zacks Business Services sector, of which Marvell is a part, has risen 5.8% over the same period. The company's shares have declined 0.5% over the past three months compared to the S&P 500's 5% increase. Over the same period, the sector has risen 5.6%.
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Marvell (MRVL) International Revenue Performance Explored
Have you assessed how the international operations of Marvell Technology (MRVL - Free Report) performed in the quarter ended July 2024? For this chipmaker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of MRVL's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.27 billion, marking a decrease of 5.1% from the year-ago quarter. We will next turn our attention to dissecting MRVL's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into MRVL's International Revenue Trends
Of the total revenue, $95 million came from Thailand during the last fiscal quarter, accounting for 7.5%. This represented a surprise of +17.53% as analysts had expected the region to contribute $80.83 million to the total revenue. In comparison, the region contributed $65 million, or 5.6%, and $76 million, or 5.7%, to total revenue in the previous and year-ago quarters, respectively.
Japan generated $33.2 million in revenues for the company in the last quarter, constituting 2.6% of the total. This represented a surprise of +1.34% compared to the $32.76 million projected by Wall Street analysts. Comparatively, in the previous quarter, Japan accounted for $17.3 million (1.5%), and in the year-ago quarter, it contributed $44 million (3.3%) to the total revenue.
China accounted for 46.1% of the company's total revenue during the quarter, translating to $586.8 million. Revenues from this region represented a surprise of +5.24%, with Wall Street analysts collectively expecting $557.61 million. When compared to the preceding quarter and the same quarter in the previous year, China contributed $529.6 million (45.6%) and $569.3 million (42.5%) to the total revenue, respectively.
During the quarter, Singapore contributed $142.2 million in revenue, making up 11.2% of the total revenue. When compared to the consensus estimate of $80.08 million, this meant a surprise of +77.57%. Looking back, Singapore contributed $111.3 million, or 9.6%, in the previous quarter, and $70.9 million, or 5.3%, in the same quarter of the previous year.
During the quarter, Malaysia contributed $29.4 million in revenue, making up 2.3% of the total revenue. When compared to the consensus estimate of $42.04 million, this meant a surprise of -30.07%. Looking back, Malaysia contributed $53 million, or 4.6%, in the previous quarter, and $39.5 million, or 3%, in the same quarter of the previous year.
Taiwan generated $38.5 million in revenues for the company in the last quarter, constituting 3.0% of the total. This represented a surprise of +6.94% compared to the $36 million projected by Wall Street analysts. Comparatively, in the previous quarter, Taiwan accounted for $42.6 million (3.7%), and in the year-ago quarter, it contributed $59.1 million (4.4%) to the total revenue.
Revenue Forecasts for the International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Marvell will report a total revenue of $1.45 billion, which reflects an increase of 2.5% from the same quarter in the previous year. The revenue contributions are expected to be 6.2% from Thailand ($90.77 million), 2.3% from Japan ($33.44 million), 42.3% from China ($614.7 million), 6.3% from Singapore ($91.03 million), 3.3% from Malaysia ($47.21 million) and 2.3% from Taiwan ($34.01 million).Analysts expect the company to report a total annual revenue of $5.49 billion for the full year, marking a decrease of 0.4% compared to last year. The expected revenue contributions from Thailand, Japan, China, Singapore, Malaysia and Taiwan are projected to be 6.2% ($338.77 million), 2.2% ($120.41 million), 43.8% ($2.4 billion), 7.1% ($390.63 million), 3.7% ($200.13 million) and 2.8% ($154.27 million) of the total revenue, in that order.
Concluding Remarks
The dependency of Marvell on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Currently, Marvell holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Marvell's Recent Stock Market Performance
Over the past month, the stock has gained 20.3% versus the Zacks S&P 500 composite's 3.6% increase. The Zacks Business Services sector, of which Marvell is a part, has risen 5.8% over the same period. The company's shares have declined 0.5% over the past three months compared to the S&P 500's 5% increase. Over the same period, the sector has risen 5.6%.