Marvell Q3 earnings preview

$Marvell Technology Group Ltd(MRVL.US)$ is scheduled to announce its Q3 2021 earnings result after the markets close on Thursday, December 3.

Marvell Technology Group is a Bermudan-domiciled semiconductor company. 

• According to Bloomberg, analysts are forecasting earnings per share of $0.249 (46.6% YoY), on revenue of $751 million (13.4% YoY).

• In the past 2 years, Marvell has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.

• 21 of 28 analysts have Buy ratings on Marvell, while 6 analysts have a Hold or the equivalent rating. Only 1 analyst rates Marvell as a sell. The average analyst price target is $46.96 implying a 2.9% upside.

The focus of Marvell's results will be on fiscal 3Q details and the 4Q outlook since the company reaffirmed its $750 million 3Q sales view when it announced its Inphi acquisition. Marvell is navigating mixed demand, as growth areas such as 5G base stations and cloud storage help mitigate weakness in enterprise business. But demand in the latter area may be closer to stabilizing as the effects of the pandemic disruptions diminish. There may not be a share recovery in enterprise sales, but the slide could be done, in our view.

Marvell’s 5G and cloud storage efforts will play a bigger role in sales and helped drive a sequential sales uptick in the company's outlook. Nokia’s ramp-up with Marvell’s 5G chips can complement a broadening 5G global rollout, while we expect growing traction in its storage business. 

-Woo Jin Ho

Marvell will hold the conference call at 4:45 PM EDT Thursday, December 3.

DocuSign Q3 earnings preview

$DocuSign Inc(DOCU.US)$ is scheduled to announce its Q3 2021 earnings result after the markets close on Thursday, December 3.

DocuSign helps organizations connect and automate how they prepare, sign, act on, and manage agreements. 

• According to Bloomberg, analysts are forecasting earnings per share of $0.135 (22.7% YoY), on revenue of $361.778 million (45% YoY).

• In the past 2 years, DocuSign has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.

• 13 of 19 analysts have Buy ratings on DocuSign, while 5 analysts have a Hold or the equivalent rating. Only 1 analyst rates DocuSign as a sell. The average analyst price target is $247.29 implying a 13.6% upside.

Post-2Q Earnings Outlook: Though the full transition of DocuSign CFO Michael Sheridan to the president of international business is a surprise, given his background, we believe the move highlights the company's growth prospects amid an expanding suite of products and ability to scale. A net dollar retention rate of 120%, along with a 60% rise in billings growth, indicate the expanding demand from DocuSign's existing user base. Management's raise in full-year sales guidance to 42% growth is unsurprising, given the acceleration in customer additions last year. This highlights sustained strength in the company's core signature product, which could further fuel sales.

Despite an uptick in data-center costs hurting gross margin, a more prominent decline in marketing spending may help boost overall operating profitability.

-Gili Naftalovich & Anurag Rana

DocuSign will hold the conference call at 4:30 PM EDT Thursday, December 3.

Dollar General Q3 earnings preview

$Dollar General Corp(DG.US)$ is scheduled to announce its Q3 2021 earnings result after the markets open on Thursday, December 3.

Dollar General Corporation operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States.

• According to Bloomberg, analysts are forecasting earnings per share of $2.023 (42.6% YoY), on revenue of $8.141 billion (16.4% YoY).

• In the past 2 years, Dollar General has beaten EPS estimates 75% of the time and has beaten revenue estimates 100% of the time.

• 21 of 30 analysts have Buy ratings on Dollar General, while 8 analysts have a Hold or the equivalent rating. Only 1 analyst rates Dollar General as a sell. The average analyst price target is $232.58 implying a 6.9% upside.

Dollar General could see 3Q same-store sales rise 9.9% amid strong demand for food and household essentials and consumer desire for quick fill-in shopping trips as Covid-19 persists. Discretionary spending continues to improve and the company is attracting new, trade-down customers. Higher labor costs, along with elevated operational expenses, were likely offset by strong sales and productivity gains, particularly from the DG Fresh self-distribution initiative. Gross margin may expand for the sixth consecutive quarter on higher initial markups, increased sales of non-consumable items and lower promotional markdowns.

SG&A may rise in 2H on additional investments to accelerate key strategies like the Non-Consumables Initiative, contactless services and up to $50 million in pandemic-related costs.

-Jennifer Bartashus & Poonam Goyal

Dollar General will hold the conference call at 10:00 AM EDT Thursday, December 3.

Ulta Beauty Q3 earnings preview

$Ulta Beauty Inc(ULTA.US)$ is scheduled to announce its Q3 2021 earnings result after the markets close on Thursday, December 3.

Ulta Beauty brings possibilities to life through the power of beauty each and every day in our stores and online with more than 25,000 products from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label. 

• According to Bloomberg, analysts are forecasting earnings per share of $1.481 (-34.2% YoY), on revenue of $1.559 billion (-7.4% YoY).

• In the past 2 years, Ulta Beauty has beaten EPS estimates 75% of the time.

• 19 of 29 analysts have Buy ratings on Ulta Beauty, while 9 analysts have a Hold or the equivalent rating. Only 1 analyst rates Ulta Beauty as a sell. The average analyst price target is $284.2 implying a 0.7% upside.

Ulta Beauty will hold the conference call at 5:00 PM EDT Thursday, December 3.