Why Marvell Technology Earnings Are Good Enough
Marvell Technology shares rose after it released better-than-expected fiscal first-quarter financial results late Thursday.
When Marvell Technology Group Ltd. (NASDAQ: MRVL) released its fiscal first-quarter financial results late on Thursday, the company said that it had $0.32 in earnings per share (EPS) and $604.6 million in revenue. Consensus estimates had called for $0.31 in EPS on revenue of $602.01 million. In the same period of last year, Marvell said it had EPS of $0.24 and $579.18 million in revenue.
During the most recent quarter, gross margin was 62.5%, up from about 60% in the first quarter of last year.
Cash flow from operations for the first quarter was $129 million. Cash, cash equivalents and short term investments totaled $1.88 billion at the end of the quarter, up from $1.84 billion at the end of the previous fiscal year.
Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.32 to $0.36 and revenues between $600 million and $630 million. Gross margin is expected to be roughly 64%. Consensus estimates call for $0.33 in EPS and $621.04 million in revenue for the quarter.
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Matt Murphy, Marvell’s president and CEO, commented:
Fiscal 2019 is off to a strong start, driven by the performance of our storage, networking and connectivity businesses which grew 7% year over year in Q1. Marvell’s R&D engine is executing well, and our newly announced products are fueling a growing design win pipeline. Overall, I’m pleased with the results and thank the entire Marvell team for their effort and contribution.
Shares of Marvell were last seen up about 3% at $22.17, with a consensus analyst price target of $28.11 and a 52-week trading range of $14.87 to $25.18.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
