Marvell Technology (MRVL - Free Report) reported splendid third-quarter fiscal 2022 results, wherein both earnings and revenues not only surpassed the respective Zacks Consensus Estimate but also improved significantly year over year.
California-based Marvell delivered non-GAAP earnings of 43 cents per share beating the consensus mark of 38 cents per share. The bottom line improved 72% from the year-ago quarter.
Marvell reported revenues of $1.21 billion, which outpaced the Zacks Consensus Estimate of $1.15 billion. The top line increased 61% from the year-earlier quarter’s reported figure. This upsurge can primarily be attributed to substantial growth in all the end markets. The data center end market witnessed 109% year-over-year growth in the third quarter.
The results from Innovium acquisition in October are included in Marvell’s third-quarter performance.
Quarter Details
From second-quarter fiscal 2022, Marvell changed its reporting segments from product basis to end market basis. The new reportable end-market business segments are: data center, carrier infrastructure, enterprise networking, consumer and industrial.
During the third quarter, Marvell’s data center revenues soared 109% year over year to $499.7 million. The segment represented 41% of fiscal third-quarter total revenues, highlighting that it is currently Marvell’s largest end market when compared to the rest.
Carrier infrastructure revenues, which constituted 18% of total revenues, grew 28% year over year to $215.1 million.
Revenues from enterprise networking jumped 56% year on year to $247.2 million and accounted for 20% of the total revenues.
Consumer revenues, representing 15% of total revenues, climbed 20% to $182.5 million.
Lastly, industrial revenues jumped 114% year over year to $66.6 million. Revenues from the industrial segment constituted 6% of total revenues.
Marvell’s non-GAAP gross margin expanded 210 basis points (bps) to 65.1%. Non-GAAP operating expenses flared up 32.4% year over year to $370.5 million. Non-GAAP operating margin expanded 880 bps year on year to 34.5%.
Balance Sheet and Cash Flow
Marvell exited the reported quarter with cash and cash equivalents of $523.5 million compared with the previous quarter’s $560 million. The company’s long-term debt totaled $4.50 billion.
The company generated $265 million of cash through operational activities in the third quarter and $473 million in the first nine months of fiscal 2022.
Marvell returned $50.4 million to shareholders through dividend payments in the third quarter and $140.3 million in the first nine months of fiscal 2022.
Guidance
For the fourth quarter, Marvell expects strong sequential revenue growth driven by the data-center end market, accelerated 5G adoptions in the United States and other regions, and broad growth across multiple products.
Marvell projects fiscal fourth-quarter revenues of $1.320 billion (+/- 3%). The Zacks Consensus Estimate for revenues is pegged at $1.21 billion, suggesting growth of 51.4% from the year-ago quarter.
Non-GAAP earnings per share are expected to be approximately 48 cents (+/- 3 cents). The consensus mark of 43 cents indicates a year-over-year surge of 48.3%.
Non-GAAP gross margin is likely to be approximately 65%, while non-GAAP operating expenses are estimated between $390 and $395.
Zacks Rank & Stocks to Consider
Marvell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Advanced Micro Devices (AMD - Free Report) , Qualcomm (QCOM - Free Report) and CDW Corporation (CDW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 1 cent to $2.64 per share in the last 60 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 63.3% in the YTD period.
The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $2.63 in the past 30 days. For fiscal 2022, earnings estimates have been revised upward by 14.1% to $10.49 per share in the past 30 days.
Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 16.2% YTD.
CDW’s consensus estimate for fourth-quarter fiscal 2021 earnings has been raised to $1.87 per share from $1.83 in the past 30 days. For fiscal 2021, earnings estimates have moved north by 1.4% to $7.81 per share over the past 30 days.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.2%. Shares of CDW have appreciated 46.9% YTD.
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Marvell Technology (MRVL - Free Report) reported splendid third-quarter fiscal 2022 results, wherein both earnings and revenues not only surpassed the respective Zacks Consensus Estimate but also improved significantly year over year.
California-based Marvell delivered non-GAAP earnings of 43 cents per share beating the consensus mark of 38 cents per share. The bottom line improved 72% from the year-ago quarter.
Marvell reported revenues of $1.21 billion, which outpaced the Zacks Consensus Estimate of $1.15 billion. The top line increased 61% from the year-earlier quarter’s reported figure. This upsurge can primarily be attributed to substantial growth in all the end markets. The data center end market witnessed 109% year-over-year growth in the third quarter.
The results from Innovium acquisition in October are included in Marvell’s third-quarter performance.
Quarter Details
From second-quarter fiscal 2022, Marvell changed its reporting segments from product basis to end market basis. The new reportable end-market business segments are: data center, carrier infrastructure, enterprise networking, consumer and industrial.
During the third quarter, Marvell’s data center revenues soared 109% year over year to $499.7 million. The segment represented 41% of fiscal third-quarter total revenues, highlighting that it is currently Marvell’s largest end market when compared to the rest.
Carrier infrastructure revenues, which constituted 18% of total revenues, grew 28% year over year to $215.1 million.
Revenues from enterprise networking jumped 56% year on year to $247.2 million and accounted for 20% of the total revenues.
Consumer revenues, representing 15% of total revenues, climbed 20% to $182.5 million.
Lastly, industrial revenues jumped 114% year over year to $66.6 million. Revenues from the industrial segment constituted 6% of total revenues.
Marvell’s non-GAAP gross margin expanded 210 basis points (bps) to 65.1%. Non-GAAP operating expenses flared up 32.4% year over year to $370.5 million. Non-GAAP operating margin expanded 880 bps year on year to 34.5%.
Balance Sheet and Cash Flow
Marvell exited the reported quarter with cash and cash equivalents of $523.5 million compared with the previous quarter’s $560 million. The company’s long-term debt totaled $4.50 billion.
The company generated $265 million of cash through operational activities in the third quarter and $473 million in the first nine months of fiscal 2022.
Marvell returned $50.4 million to shareholders through dividend payments in the third quarter and $140.3 million in the first nine months of fiscal 2022.
Guidance
For the fourth quarter, Marvell expects strong sequential revenue growth driven by the data-center end market, accelerated 5G adoptions in the United States and other regions, and broad growth across multiple products.
Marvell projects fiscal fourth-quarter revenues of $1.320 billion (+/- 3%). The Zacks Consensus Estimate for revenues is pegged at $1.21 billion, suggesting growth of 51.4% from the year-ago quarter.
Non-GAAP earnings per share are expected to be approximately 48 cents (+/- 3 cents). The consensus mark of 43 cents indicates a year-over-year surge of 48.3%.
Non-GAAP gross margin is likely to be approximately 65%, while non-GAAP operating expenses are estimated between $390 and $395.
Zacks Rank & Stocks to Consider
Marvell currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Advanced Micro Devices (AMD - Free Report) , Qualcomm (QCOM - Free Report) and CDW Corporation (CDW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 1 cent to $2.64 per share in the last 60 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 63.3% in the YTD period.
The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $2.63 in the past 30 days. For fiscal 2022, earnings estimates have been revised upward by 14.1% to $10.49 per share in the past 30 days.
Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 16.2% YTD.
CDW’s consensus estimate for fourth-quarter fiscal 2021 earnings has been raised to $1.87 per share from $1.83 in the past 30 days. For fiscal 2021, earnings estimates have moved north by 1.4% to $7.81 per share over the past 30 days.
CDW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.2%. Shares of CDW have appreciated 46.9% YTD.
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Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
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