Why Marvell Technology Earnings Are Good Enough

By Chris Lange Updated Jan 11, 10:53PM EST · Published Jun 1, 10:45AM EDT

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Why Marvell Technology Earnings Are Good Enough — © Thinkstock

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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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.