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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Marvell Technology Group. 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.