Marvell (MRVL) Reliance on International Sales: What Investors Need to Know

Have you evaluated the performance of Marvell Technology's (MRVL) international operations during the quarter that concluded in January 2025? Considering the extensive worldwide presence of this chipmaker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining MRVL's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $1.82 billion, experiencing an increase of 27.4% year over year. Next, we'll explore the breakdown of MRVL's international revenue to understand the importance of its overseas business operations.

A Look into MRVL's International Revenue Streams

During the quarter, Taiwan contributed $281.1 million in revenue, making up 15.47% of the total revenue. When compared to the consensus estimate of $97.39 million, this meant a surprise of +188.63%. Looking back, Taiwan contributed $198.5 million, or 13.09%, in the previous quarter, and $26.1 million, or 1.83%, in the same quarter of the previous year.

Of the total revenue, $20.4 million came from Malaysia during the last fiscal quarter, accounting for 1.12%. This represented a surprise of -65.82% as analysts had expected the region to contribute $59.69 million to the total revenue. In comparison, the region contributed $40.3 million, or 2.66%, and $53.1 million, or 3.72%, to total revenue in the previous and year-ago quarters, respectively.

Singapore accounted for 8.40% of the company's total revenue during the quarter, translating to $152.6 million. Revenues from this region represented a surprise of +15.32%, with Wall Street analysts collectively expecting $132.33 million. When compared to the preceding quarter and the same quarter in the previous year, Singapore contributed $46.1 million (3.04%) and $79.5 million (5.57%) to the total revenue, respectively.

China generated $732.8 million in revenues for the company in the last quarter, constituting 40.32% of the total. This represented a surprise of -11.05% compared to the $823.84 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $658.4 million (43.43%), and in the year-ago quarter, it contributed $680.7 million (47.72%) to the total revenue.

During the quarter, Japan contributed $59.9 million in revenue, making up 3.30% of the total revenue. When compared to the consensus estimate of $48.88 million, this meant a surprise of +22.55%. Looking back, Japan contributed $55.8 million, or 3.68%, in the previous quarter, and $43.7 million, or 3.06%, in the same quarter of the previous year.

Of the total revenue, $71.1 million came from Thailand during the last fiscal quarter, accounting for 3.91%. This represented a surprise of -38.92% as analysts had expected the region to contribute $116.41 million to the total revenue. In comparison, the region contributed $73.3 million, or 4.83%, and $113.3 million, or 7.94%, to total revenue in the previous and year-ago quarters, respectively.

Finland accounted for 2.11% of the company's total revenue during the quarter, translating to $38.4 million. Revenues from this region represented a surprise of +13.98%, with Wall Street analysts collectively expecting $33.69 million. When compared to the preceding quarter and the same quarter in the previous year, Finland contributed $32.5 million (2.14%) and $26.7 million (1.87%) to the total revenue, respectively.

Other International generated $179.6 million in revenues for the company in the last quarter, constituting 9.88% of the total. This represented a surprise of -9.5% compared to the $198.45 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other International accounted for $155.2 million (10.24%), and in the year-ago quarter, it contributed $140.4 million (9.84%) to the total revenue.

Revenue Forecasts for the International Markets

The current fiscal quarter's total revenue for Marvell, as projected by Wall Street analysts, is expected to reach $1.88 billion, reflecting an increase of 61.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Taiwan is anticipated to contribute 6.1% or $114.77 million, Malaysia 3.1% or $58.52 million, Singapore 7.6% or $141.88 million, China 43.9% or $823.97 million, Japan 2.6% or $47.8 million, Thailand 5.9% or $110.97 million, Finland 1.8% or $34.09 million and Other International 9.7% or $182.15 million.

Analysts expect the company to report a total annual revenue of $8.28 billion for the full year, marking an increase of 43.5% compared to last year. The expected revenue contributions from Taiwan, Malaysia, Singapore, China, Japan, Thailand, Finland and Other International are projected to be 6.6% ($544.91 million), 2.9% ($238.33 million), 6.8% ($559.72 million), 42.6% ($3.53 billion), 2.7% ($221.37 million), 5.8% ($476.05 million), 1.8% ($147.47 million) and 9.7% ($802.96 million) of the total revenue, in that order.

Key Takeaways

Relying on international markets for revenues, Marvell faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At present, Marvell holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Marvell's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 23.4%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Marvell among its entities, has appreciated by 11.9%. Over the past three months, the company's shares have seen a decline of 39.4% versus the S&P 500's 3.1% decline. The sector overall has witnessed a decline of 6.8% over the same period.

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