For the fourth quarter Marvell posted earnings of 29 cents a share, comfortably beating analysts' estimates of 25 cents a share. Revenue rose 20% from the year-ago quarter to $932 million. Analysts surveyed by Thomson Reuters expected revenue of $901 million.
The fiscal year was "the start of a turnaround" for Marvell, CEO Sehat Sutardja said in a 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."
For the first quarter the chipmaker expects earnings of between 20 cents and 24 cents a share, while analysts predict earnings of 21 cents a share. Marvell expects to see revenue between $870 million and $910 million in the quarter, compared to analysts' estimates of $849 million.
Must read: Expect Maximum Overbought Reading Midweek
TheStreet Ratings team rates MARVELL TECHNOLOGY GROUP LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARVELL TECHNOLOGY GROUP LTD (MRVL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."