3 key takeaways from Marvell Technology’s Q1 earnings report

Marvell Technology Inc (NASDAQ: MRVL) reported its financial results for the first quarter that beat Wall Street estimates. The company also forecast record revenue in fiscal Q2.

1. Financial performance

Marvell Technology swung to $88.2 million (£62.21 million) of loss in the first quarter that translates to 13 cents per share. In the same quarter last year, it had posted a higher $113 million of loss, or 17 cents per share.

On an adjusted basis, the semiconductor company earned 29 cents per share versus the year-ago figure of 18 cents per share. Marvell generated $832.3 million of revenue in Q1 – an increase from $693.6 million last year.

According to FactSet, experts had forecast the company to post $806.7 million of revenue in the recent quarter and 27 cents of earnings per share. Marvell valued its cash and cash equivalents at $523 million at the end of the first quarter.

2. Guidance for the fiscal second quarter

For the fiscal second quarter, Marvell now forecasts up to $1.1 billion of revenue and 28 cents per share to 34 cents per share of adjusted EPS. In comparison, analysts are calling for a lower $841.1 million of revenue and 30 cents of adjusted per-share earnings.

If met, Q2 will mark the first quarter in history for Marvell to report more than $1 billion of revenue. The financial update comes more than a month after Marvell acquired Inphi Corp – a deal that it had announced last year in October.

3. CEO Matt Murphy’s remarks

Commenting on the earnings report and guidance, CEO Matt Murphy said:

Impact on the share price

Marvell Technology was reported more than 5% up in after-hours trading on Monday. Including the price action, the stock is now exchanging hands at around $51 per share versus a year-to-date low of $40 per share in early March.

Marvell Technology performed largely upbeat in the stock market last year with an annual gain of close to 80%. At the time of writing, the Hamilton-based company has a market cap of $39.55 billion.