Marvell Technology climbs 20% on Wednesday following a largely upbeat earnings report

Marvell
Technology announced its quarterly performance results on Wednesday that beat
analysts’ estimates for earnings and revenue. Following the positive earnings
report, Marvell was seen trading higher in extended trading later on Wednesday.

Analysts
were expecting the company to print 16 cents of earnings per share (adjusted)
in the fourth quarter. In its financial report on Wednesday, however, Marvell
topped the estimate marginally with 17 cents of earnings per share (adjusted) in
the recent quarter. In the same quarter last year, the
global semiconductor company had recorded a higher 25 cents of earnings per
share.

Marvell
Boasts $717.67 Million In Revenue In The Fourth Quarter

In
terms of earnings, Marvell posted a 6.25% increase as compared to the analysts’
estimate. The chipmaker had noted 17 cents of earnings per share in the third
quarter in line with the experts’ forecast. In the previous four quarters, Marvell
has topped analysts’ EPS estimates 3 times.

Zacks
Semiconductor’s subsidiary, Marvell Technology posted $717.67 million in
revenue in the fourth quarter that marked a 0.92% higher as compared to what
the experts had estimated. The current reading, however, fell shy of $744.80
million in revenue that was recorded in the same quarter last year. In terms of
revenue, Marvell has topped the analysts’ estimates in all of the previous four
quarters.

In
its guidance for the first quarter, Marvell Technology said that it now expects
to generate $680 million in revenue. Its estimate for earnings per share was
revealed at 11 cents per share to 17 cents per share for the current quarter. Experts,
on the other hand, are expecting the company to print $674.8 million in revenue
in Q1 while their expectations for earnings were announced at 13 cents per
share.

Nokia
Announces Its Partnership With Marvell Technology

In
separate news, Nokia
also revealed its partnership with Marvell Technology for the development
of cost-effective chips for the global 5G wireless network.

Marvell
Technology closed the last week at $23.80 in the stock market on Friday that
marks over 10% decline in 2020 so far. Its performance in 2019, on the other
hand, remained largely upbeat with an annual gain of around 70%. The stock opened
at around $16 per share in January 2019 but closed the year at a significantly
higher $26 per share in December. Marvell Technology currently has a market cap
of $16.16 billion with a price to earnings ratio of 10.28.