Marvell Rises on Solid Q1 Earnings Report

Marvell topped fiscal first quarter estimates for both sales and earnings.
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Shares of Marvell  (MRVL) - Get Report jumped after hours Thursday after the communications semiconductor company reported fiscal first quarter results that topped estimates. 

The Bermuda-based company reported earnings of 18 cents per share on revenue that rose nearly 5% year over year to $693.64 million.

Analysts were expecting Marvell to report earnings of 14 cents per share on revenue of $678.7 million. 

Marvell shares were gaining 5.1% to $31.50 in after hours trading Thursday. 

"In a challenging environment, solid execution by the team drove strong first quarter financial results with disciplined operating expense management, healthy operating cash flow, and revenue above the mid-point of guidance, enabled by stronger demand for our networking products from the datacenter and 5G infrastructure end markets," said CEO Matt Murphy. 

The company reported a non-GAAP gross margin of 63% for the quarter. 

For the fiscal second quarter, the company expects revenue of between $684 million and $756 million and earnings between 17 cents and 23 cents per share. 

Analysts are expecting revenue of $688.66 million with earnings of 23 cents per share. 

Marvell was the subject of mostly bullish analyst takes following its March earnings release with a Barclays analyst saying "The company is well positioned to benefit from secular growth drivers with the best 5G exposure in the group. Although storage is weak, MRVL diversification efforts should help drive a re-rating as a diversified communication semiconductor company."

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