Third quarter Marvell Technology meets Wall Street estimates

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The Marvell Technology Group Ltd. (NASDAQ: MRVL) on Thursday announced its financial results for the third quarter of the fiscal year, which were in line with analyst expectations.

Company stock fell approximately 4% in Thursday’s extended trading. Including the price action, Marvell Technology Group Ltd. is now trading at £32.26 per share, up from £12.82 per share in March, due to the COVID 19 disruption. The share started the year at £20.35 per share. Learn more about the selection of winning shares.

 

 

 

Financial results of Marvell for Q3 compared to analysts’ estimates

Marvell said its third quarter loss was printed at £17.02 million, or 2.23 pence per share. This compares with a much larger loss of £61.33 million or 17.84 pence per share in the same quarter last year.

On an adjusted basis, the semiconductor company earned 18.58 pence per share in the last quarter. In a separate U.S. news release on Thursday, U.S. retailer Kroger Co. also released its quarterly financial update.

In terms of revenue, Marvell reported third quarter revenues of £557.59 million compared to £492.40 million in the same period last year. In the previous quarter (Q2), the Nasdaq-listed company had reported revenues of £540.42 million, according to the report released at the end of August.

According to FactSet, experts had predicted that the company would record revenues of 558.26 million pounds sterling in the third quarter. Their estimate of earnings per share for the third quarter was 18.58 pence.

Marvell’s forecast for the fourth quarter

For the fourth quarter of the fiscal year, the Bermudan company now forecasts a decline in adjusted earnings per share in a range of 18.58 to 24.53 pence. Marvel expects fourth quarter revenues to be in the range of £554.39 million to £612.74 million. Analysts, however, are calling for adjusted earnings per share of 21.56 pence on revenues of £585.46 million.

CEO Matt Murphy commented on Thursday’s earnings report and said

“Strong 5G and cloud product ramps drive our continued success in these strategic growth markets. Our team is working to mitigate the impact of industry-wide supply bottlenecks that currently limit our ability to fully meet increasing demand”.

Marvell Technology’s performance on the stock market was largely positive last year with an annual profit of nearly 70%. At the time of writing, the company is valued at £22.68 billion and has a price-earnings ratio of 22.85.

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