When Marvell Technology Group Ltd. (NASDAQ: MRVL) released its fiscal first-quarter earnings report after the markets closed on Thursday, the company said that it had $0.24 in earnings per share (EPS) and $579.2 million. The consensus estimates had called for $0.21 in EPS and $570.2 million in revenue.
During this quarter, the company sold its LTE thin-modem business to ASR Microelectronics for a $45 million. This product line fell under Marvell’s other product category.
In terms of the outlook for the second quarter, the company expects to see EPS in the range of $0.26 to $0.30 and revenues between $585 million and $615 million. The consensus estimates are $0.25 in EPS and $591.67 million in revenue.
Note that revenue guidance provided for the fiscal second quarter excludes revenue associated with the LTE sale, which has been approximately $5 million per quarter.
On the books, Marvell’s cash, cash equivalents and short-term investments totaled $1.65 billion at the end of the quarter, down from $1.67 billion at the end of the previous fiscal year.
Matt Murphy, president and CEO of Marvell, commented:
Marvell executed well in the first quarter of fiscal year 2018 as a renewed focus on its core businesses of storage, networking and connectivity were able to generate revenue growth of 12% year-over-year, driven by the long-term secular growth trends in the amount of data being created, stored and transmitted both wired and wirelessly. We are pleased to see that this growth was accompanied by a significant expansion in gross and operating margin, demonstrating the strength in our business model and the value Marvell’s solutions are bringing to our customers.
Shares of Marvell were last seen up almost 2% at $17.25, with a consensus analyst price target of $18.50 and a 52-week range of $9.05 to $17.73.