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Why Marvell Technology's Stock Jumped 13% Today

By Anders Bylund - Updated Mar 5, 2020 at 11:41AM

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The semiconductor company posted strong fourth-quarter results and optimistic guidance, even after accounting for coronavirus slowdowns.

What happened

The stock of Marvell Technology (MRVL -4.48%) was soaring Thursday morning. The designer of semiconductors for mobile and embedded systems reported solid fourth-quarter results Wednesday night, edging out analyst estimates across the board. By 11:25 a.m. EST today, Marvell's stock was trading 13.2% higher.

So what

Fourth-quarter revenue fell 3.6% year over year to $718 million, but your average analyst would have settled for sales near $713 million. Adjusted earnings decreased by 32%, stopping at $0.17 per share. That was still a penny above Wall Street's consensus estimate. Management also set up first-quarter guidance targets just ahead of current Street estimates, aiming for earnings of approximately $0.14 per share on sales in the neighborhood of $680 million.

A businessman launches a tiny rocket skyward from his smartphone.

Image source: Getty Images.

Now what

The first-quarter guidance figures account for a revenue slowdown of roughly 5% due to supply chain disruption from the COVID-19 coronavirus, and the given guidance ranges were wider than usual in order to account for the market uncertainties this virus is creating. At the same time, Marvell is poised to deliver 5G-capable networking chips to several leading makers of wireless infrastructure equipment.

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Marvell Technology Group Ltd. Stock Quote
Marvell Technology Group Ltd.
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