Marvell Technology Group Ltd. Beats Earnings Targets, Shares Correct Down Anyhow
On Thursday night's release of fourth-quarter results, shares of Marvell Technology Group 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."
The article Marvell Technology Group Ltd. Beats Earnings Targets, Shares Correct Down Anyhow originally appeared on Fool.com.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.
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