Shares of Marvell Technology Group fell 6% in extended market trading on March 3 after the semiconductor company issued financial guidance for 1Q FY22 and quarterly earnings came in line with analysts' estimates.
Marvell (MRVL) expects revenues of $800 million in 1Q while non-GAAP diluted earnings per share (EPS) are forecasted to be between $0.23 to $0.31 per share. Consensus estimates were for revenues of $787 million and diluted EPS of $0.27 in 1Q. The 1Q outlook takes into account export restrictions on some Chinese customers by the US government and the uncertainty due to the COVID-19 pandemic.
The company reported net revenues of $798 million in 4Q, up by 11.2% year-on-year that exceeded the midpoint of its guidance provided in the preceding quarter and topped analysts’ estimates of $794.3 million. Non-GAAP diluted EPS came in at $0.29 and in line with analysts' estimates. (See Marvell Technology stock analysis on TipRanks)
Marvell CEO Matt Murphy said, “Marvell ended fiscal year 2021 on a strong note with fourth quarter revenue exceeding the mid-point of guidance. We delivered outstanding fiscal year 2021 performance, with robust revenue growth of 10%, led by our networking business which grew 22% driven by strong 5G and Cloud product ramps.”
“We are excited about the numerous opportunities ahead in fiscal 2022. We anticipate strong growth in the first quarter of fiscal 2022, projecting revenue to grow approximately 15% year on year at the mid-point of guidance,” Murphy added.
Following the earnings results, Oppenheimer analyst Rick Schafer reiterated a Buy and a price target of $60 on the stock. Schafer said in a note to investors, "We see storage off seasonally in F1Q but likely up at least 10% this year. Auto presents additional upside optionality. Supply constraints should ease going forward but likely linger through CY21."
"Channel (~25% of sales) inventories remain below target (2.5 weeks) and delinquencies high, though the sole-sourced nature of MRVL's business likely sees demand pushed forward vs. lost...Given a strong play in 5G, cloud, and auto, we see MRVL positioned for sustained outsized growth," Schafer added.
The rest of the Street is bullish on the stock with a Strong Buy consensus rating based on 11 Buys and 1 Hold. The average analyst price target of $57.83 implies around 27% upside potential to current levels.
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Yext stock plunged 15.4% in Wednesday’s extended trading session after the search-software provider issued revenue guidance for 1Q and FY22 that fell short of analysts’ expectations.
Yext (YEXT) projects revenues in the range of $87-$89 million for 1Q, significantly lower than the consensus estimate of $93.9 million. For FY22, it forecasts sales between $375 million and $380 million, much lighter than Street’s expectations of $411 million.
Yext anticipates reporting a loss per share in the range of $0.05-$0.07 for 1Q and $0.17-$0.22 for FY22. The consensus estimate for the quarter and full-fiscal are pegged at a loss per share of $0.06 and $0.17, respectively.
While its outlook disappointed, Yext reported better-than-expected results for 4Q. Non-GAAP EPS was break-even, which compared favorably with the Street’s estimates of $0.08 loss per share as well as the year-ago quarter’s loss per share of $0.12. (See Yext stock analysis on TipRanks).
4Q revenue increased 13% to $92.2 million year-on-year and surpassed analysts’ projections of $89.1 million.
Following the earnings release, Berenberg Bank analyst Brett Knoblauch reiterated a Hold rating and price target of $16 (3% downside potential). In a note to investors, Knoblauch wrote, “We believe the share price reaction after-hours is warranted and we would expect shares and the multiple it trades on to continue to be pressured until there is more clarity regarding when normal business dynamics will return.”
Consensus among analysts is a Moderate Buy based on 1 Buy and 1 Hold. The average analyst price target of $18.50 implies upside potential of about 12% from current levels. Shares have gained around 14% over the past year.
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CMC Materials increased its quarterly cash dividend by 5% to $0.46 per share. The global supplier of consumable materials has been rewarding shareholders with cash dividends over the last 17 years.
CMC Materials (CCMP) announced that the new dividend will be paid on April 23, to shareholders of record as of March 23.
The company’s annual dividend of $1.84 per share now reflects a dividend yield of 1.08%.
CMC Materials also increased its share repurchase program to $150 million. The company had $27 million of shares available under its current share repurchase program as of Dec. 31, 2020.
Earlier this week, CMC Materials inked a deal to acquire Nevada-based International Test Solutions (ITS), a designer and manufacturer of innovative, high-performance consumables used by semiconductor manufacturers, in a cash deal worth $125 million. The deal, which awaits regulatory approvals, is anticipated to close this April. (See CMC Materials stock analysis on TipRanks)
On Jan. 25, Citigroup analyst Amanda Scarnati lifted the stock’s price target to $150 (12.2% downside potential) from $140 and maintained a Sell rating. The analyst “updated estimates and price targets across semiconductor equipment and components to align with Citi’s updated wafer fab equipment estimates and expanded multiples driven by strong near term capex spend.”
The rest of the Street is cautiously bearish about the stock with a Moderate Sell consensus rating. That’s based on 1 Hold and 1 Sell. The average analyst price target of $157 implies 8.1% downside potential to current levels.
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Dollar Tree's fiscal 4Q earnings topped the Street consensus driven by a rise in same-store sales and gross margin expansion. Shares of the retail company declined 1.3% in Wednesday’s extended trading session after closing almost 3% higher on the day.
Dollar Tree’s (DLTR) 4Q adjusted earnings increased 19% year-over-year to $2.13 per share and beat Street estimates of $2.11 per share. Net sales advanced 7.2% to $6.77 billion missing analysts’ expectations of $6.79 billion.
The company’s enterprise same-store sales grew 5% in the quarter, while same-store sales for family dollar surged 8.1%. Dollar Tree same-store sales rose 2.4%. The gross margin expanded by 80 basis points.
Dollar Tree CEO Michael Witynski said, “As we look ahead, we believe our proven strategic store formats, accelerated store growth plan, 1,250 planned store renovations for the year, several key sales - and traffic-driving initiatives, and a robust balance sheet will enable us to deliver long-term value for each of our stakeholders - customers, associates, suppliers, and shareholders.” (See Dollar Tree stock analysis on TipRanks)
Additionally, the company bumped up its share repurchase authorization plan by $2 billion. Dollar Tree now has a total $2.4 billion share repurchase authorization, including the remaining $400 million of its prior authorization.
Following the 4Q results, Oppenheimer analyst Rupesh Parikh reiterated a Hold rating on the stock. The analyst “remains concerned on the company’s ability to deliver sustained levels of comp and profit growth.”
Parikh believes “investors are best to remain on the sidelines for now.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 analysts suggesting a Buy, 1 analyst recommending a Hold and 1 analyst suggests a Sell. The average analyst price target of $122 implies almost 20% upside potential to current levels. Shares have jumped 29% over the past year.
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