Marvell Technology Group
The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Marvell Technology Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Marvell Technology Group reported revenue of $775.3 million. The 31 analysts polled by S&P Capital IQ hoped for a top line of $725.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. Non-GAAP EPS of $0.19 for Q4 were 9.5% lower than the prior-year quarter's $0.21 per share. GAAP EPS of $0.09 for Q4 were 31% lower than the prior-year quarter's $0.13 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 52.2%, 190 basis points worse than the prior-year quarter. Operating margin was 5.6%, 390 basis points worse than the prior-year quarter. Net margin was 6.5%, 440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $710.3 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $3.10 billion. The average EPS estimate is $0.74.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Marvell Technology Group is hold, with an average price target of $9.17.
Is Marvell Technology Group the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Marvell Technology Group to My Watchlist.
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 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.
More from The Motley Fool
Why Marvell Technology Isn’t Done Growing Yet
Marvell Technology enjoys solid catalysts in fast-growing areas.
The Marvell Technology/Cavium Deal Keeps the Ball Rolling in the Semiconductor Industry
The companies announced they were merging to much investor cheer.
What to Watch in Marvell Technology’s Q3 Earnings
Marvell Technology's upcoming results will give clarity about where the company is headed.