Marvell Technology Group Ltd. (MRVL) just reported financial results for the third fiscal quarter of fiscal year 2018. We were mildly bullish coming into the quarterly report. Marvell earnings beat our estimates on both the top and bottom lines by a slim margin. This should be enough to see sustained positive momentum in the stock moving forward:

“Our strong performance in the third quarter is a direct result of growth in our core businesses and improved execution across the company, enabling us to continue to unlock the earnings power of Marvell,” said Matt Murphy, Marvell President and CEO.

Marvell earnings show that revenue for the third quarter of fiscal 2018 was $616 million, which exceeded the midpoint of the Company’s guidance provided on August 24, 2017.

GAAP net income from continuing operations for the third quarter of fiscal 2018 was $149 million, or $0.30 per share. Non-GAAP net income from continuing operations for the third quarter of fiscal 2018 was $172 million, or $0.34 per diluted share. Cash flow from operations for the third quarter was $216 million.

Fourth Quarter of Fiscal 2018 Financial Outlook:

  • Revenue is expected to be $595 million to $625 million.
  • GAAP and non-GAAP gross margins are expected to be approximately 62%.
  • GAAP operating expenses are expected to be $240 million to $246 million.
  • Non-GAAP operating expenses are expected to be $215 million to $220 million.
  • GAAP diluted EPS from continuing operations is expected to be in the range of $0.23 to $0.29 per share.
  • Non-GAAP diluted EPS from continuing operations is expected to be in the range of $0.29 to $0.33 per share.

 

In summation Marvell earnings were pretty strong, and the outlook decent. Looking ahead, we expect 2018 as a whole to be a very strong year for the company. We maintain a buy rating on the stock. Lets not forget, the purchase of Cavium is still a fresh catalyst.

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