Marvell Technology Group
The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Marvell Technology Group met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Marvell Technology Group booked revenue of $742.7 million. The 30 analysts polled by S&P Capital IQ expected to see revenue of $740.2 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $900.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.21. The 31 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share on the same basis. GAAP EPS of $0.13 for Q4 were 61% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.1%, 460 basis points worse than the prior-year quarter. Operating margin was 9.4%, 1,460 basis points worse than the prior-year quarter. Net margin was 10.9%, 1,380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $768.2 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $3.54 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,368 members out of 1,444 rating the stock outperform, and 77 members rating it underperform. Among 368 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 351 give Marvell Technology Group a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Marvell Technology Group is outperform, with an average price target of $17.85.
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