Marvell Technology Group Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Marvell Technology Group (NAS: MRVL) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended May 4 (Q1), Marvell Technology Group beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.


Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
 Marvell Technology Group logged revenue of $734.4 million. The 29 analysts polled by S&P Capital IQ anticipated revenue of $721.6 million on the same basis. GAAP reported sales were 7.8% lower than the prior-year quarter's $796.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.19. The 29 earnings estimates compiled by S&P Capital IQ averaged $0.14 per share. Non-GAAP EPS of $0.19 for Q1 were 17% lower than the prior-year quarter's $0.23 per share. GAAP EPS of $0.11 for Q1 were 31% lower than the prior-year quarter's $0.16 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 54.3%, 30 basis points better than the prior-year quarter. Operating margin was 5.8%, 600 basis points worse than the prior-year quarter. Net margin was 7.2%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $787.5 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $3.20 billion. The average EPS estimate is $0.83.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,383 members out of 1,464 rating the stock outperform, and 81 members rating it underperform. Among 301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 284 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 hold, with an average price target of $10.62.

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The article Marvell Technology Group Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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 ofMotley 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.

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