Marvell Technology Group Ltd. Beats Earnings Targets, Shares Correct Down Anyhow

Marvell shares came into this fourth-quarter report on high hopes and strong stock gains. Even a strong earnings beat wasn't enough to support overheated share prices.

Feb 20, 2014 at 10:57PM
Mrvl Logo

Image source: Marvell.

On Thursday night's release of fourth-quarter results, shares of Marvell Technology Group (NASDAQ:MRVL) lost the regular session's 2.3% gains. But don't cry for Marvell shareholders, as the stock had gained 71% over the last year, and 21% in the last three months alone, setting the stock up for a correction tonight.

The communications microchip designer reported non-GAAP earnings of $0.29 per share on $932 million in revenue. That's a 20% year-over-year sales boost, and 53% stronger earnings per share.

Marvell surpassed analyst targets on both the top and bottom lines. Wall Street firms were looking for earnings near $0.25 per share on roughly $900 million sales. Free cash flows fell 49%, to $82 million.

Looking ahead, Marvell's earnings guidance for the first quarter is largely in line with Wall Street's current $0.21 estimate, though the $870 to $910 million revenue range sits far above the Street's $850 million target.

"Fiscal year 2014 was the start of a turnaround for Marvell," said Marvell CEO Sehat Sutardja in a prepared statement. "We are investing in advanced technologies that will help drive increased business opportunities and continued revenue and profit growth in all of our target end markets."

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information