AmTech analyst Shaw Wu says chip-maker Marvel (MRVL) will likely to see upside in Q3:
We anticipate MRVL to hit the upper-end of its revenue guidance of $830-$840 million and post EPS in-line to slightly better than $0.21 (consensus and AmTech at $836 million and $0.21 in EPS). In terms of business areas, our supply chain checks indicate strength in HDDs (49% of revenue), XScale (19%), and Wi-Fi (6%).
Wu also thinks higher than expected revenue from Research in Motion (RIMM) and Western Digital (WDC), two of MRVL’s largest customers, augers well for Marvel:
Key customers including WDC and RIMM have reported earnings, both of which beat consensus revenue and raised their revenue outlooks. We view this as positive as both are among MRVL ‘ s larger customers. In addition, our supply chain checks into its production data on its key end markets including PCs (in particular laptops/notebooks) and the video game hardware market indicate strength.
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