Marvell (MRVL) Stock Trading Lower Since Q4 Earnings Report

Marvell Technology Group Ltd. (NASDAQ:MRVL), founded in 1995, has a broad portfolio of chips, networking equipment, and storage devices for data centers. Its chips are also used in 5G and communications infrastructure, as well as in the advanced systems incorporated in modern vehicles these days. MRVL has been trading on NASDAQ for more than 20 years now. It went public in June 2000 by pricing 6 million shares at $15 for total proceeds of $90 million.

The company recently announced better-than-expected financial results for the fourth quarter. It reported earnings of $16.5 million, or 2 cents per share for the three months ended January 30, as compared to $1.77 billion, or 24 cents per share in the same period of 2020. However, its adjusted earnings in the quarter increased to 29 cents per share, versus 17 cents per share in the year-ago quarter.

Revenue came in at $797.8 million, above $717.7 million in the comparable period of 2020. Analysts on average were expecting Marvell to report a profit of 29 cents per share on $786.1 million in revenue.

Commenting on the results, CEO Matt Murphy said in a statement, “Marvell ended fiscal year 2021 on a strong note with fourth quarter revenue exceeding the mid-point of guidance. We delivered outstanding fiscal year 2021 performance, with robust revenue growth of 10%, led by our networking business which grew 22% driven by strong 5G and Cloud product ramps.”

Marvell also issued its earnings and revenue outlook for the first quarter. It expects to report an adjusted profit in the range of 23 cents per share to 31 cents per share and revenue between $760 million and $840 million. Analysts were looking for a profit of 27 cents per share and revenue of $786.8 million.

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MRVL shares fell sharply on Thursday despite beating analysts’ expectations for Q4. The stock continued its downward trajectory on Friday, diving more than 3 percent in the early trading session.

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Disclosure: No positions. This article is originally published at Insider Monkey.