Investing

Earnings Previews: Big Lots, DocuSign, Marvell

DocuSign’s revenue growth for three of the past four quarters has been more than 50% per quarter. The consensus estimate for the third quarter calls for revenue growth of less than 40%. DocuSign reports quarterly results after markets close on Thursday.

Revenue considerations aside, analysts remain solidly bullish on the stock. Of 20 brokerages covering the company, 17 have rated the stock a Buy or Strong Buy and the other three have a Hold rating. At a share price of around $241.50, the upside potential based on a median price target of $327.50 is about 36%. At the high price target of $389, the upside potential is 61%.

Fiscal 2022 third-quarter revenue is forecast at $531.25, up 3.8% sequentially and about 39% year over year. Adjusted EPS are forecast at $0.46, down a penny sequentially and more than double the $0.22 per-share profit in the same quarter a year ago. For the full fiscal year ending in January, DocuSign is expected to post EPS of $1.75, up nearly 95%, on sales of $2.09 billion, up 43.6%.

DocuSign’s share price to earnings multiple for the 2022 fiscal year is 138.3. For fiscal 2023, the multiple to estimated EPS of $2.21 is 109.6, and for 2024, it is 83.1 times estimated EPS of $2.92. The stock’s 52-week range is $179.49 to $314.76. DocuSign does not pay a dividend. Total shareholder return for the past year is 12.3%.

Marvell

Chipmaker Marvell Technology Inc. (NASDAQ: MRVL) has seen its shares appreciate by about 61% over the past 12 months. All that growth has come since late May. Demand from data centers, the auto industry, and network equipment makers has lit a fire under Marvell’s stock.

In the second quarter, revenue rose 48% year over year and year-over-year growth for the current quarter is about 44%. Both those percentages are more than double sales growth in the two previous quarters. Marvell is firmly entrenched in three fast-growing industries, all of which are expected to continue growing at a compound annual growth rate of 20% through 2024. The company reports quarterly results after markets close Thursday.

Analysts are solidly bullish on Marvell stock. Of 30 brokerages covering the shares, 24 have given the stock a Buy or Strong Buy rating, and five more rate the stock at Hold. At a share price of around $74.20, the upside potential to a median price target of $80 is 7.8%. At the high price target of $100, the upside potential is more than 48%.

For the third quarter of fiscal 2022, Marvell’s revenue is forecast to come in at $1.15 billion, up 6.8% sequentially and more than 50% higher year over year. Adjusted EPS are forecast at $0.38, up 12.7% sequentially and up 52% year over year. For the full fiscal year ending in January, EPS are forecast at $1.45, up 57%, on sales of $4.27 billion, up nearly 44%.

Marvell’s share price to earnings multiple for fiscal 2022 is 51.5. For fiscal 2023, the multiple to estimated EPS of $1.94 is 38.4, and for 2024, it is 30.1 times estimated EPS of $2.48. The stock’s 52-week range is $37.92 to $76.12. Marvell pays an annual dividend of $0.24 (yield of 0.32%). Total shareholder return for the past year is just over 60%.

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