The stock rose as much as 12% to $26 a share in post-market trading Wednesday. As the coronavirus has already impacted earnings estimates for semiconductor companies, who have had to shut plants in China down and absorb lower sales as end market consumers stay home, Marvell shares were down 17% for the year heading into earnings.
First, here were the fourth quarter earnings results:
- Adjusted EPS: 17 cents v. 16 cents expected
- Revenue: $718 million v. $713 million.
First quarter, fiscal year 2021 guidance:
- Revenue: $680 million plus or minus 5% v. $672 million expected
Even with the virus somewhat embedded into guidance, management’s forecast impressed. Marvell said the 5G sales outlook is still strong and announced expanded relationships with two key customers.
“Nokia announced an expanded relationship with Marvell to develop multiple generations of leading 5G silicon solutions,” the company said. "We also announced the extension of our long-term collaboration with Samsung on the radio access network.”