We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marvell Technology (MRVL - Free Report) reported impressive results for the fourth quarter of fiscal 2024, wherein revenues outpaced the Zacks Consensus Estimate while non-GAAP earnings matched the same. The chipmaker’s fourth-quarter revenues and earnings came in line with the midpoint of management’s guidance.
Despite reporting decent fourth-quarter results, MRVL stock fell 7.7% during Thursday’s extended trading session as its guidance for the first-quarter fiscal 2025 top and bottom lines was weak.
Let’s delve deeper into the fourth-quarter performance.
Wilmington, DE-based Marvell reported non-GAAP earnings of 46 cents per share, which came in line with the Zacks Consensus Estimate as well as the midpoint of the company’s previous forecast of 46 cents (+/- 5 cents). Moreover, the bottom line was flat on a year-over-year basis.
The semiconductor company’s fourth-quarter revenues increased 1% year over year to $1.43 billion and surpassed the consensus mark of $1.42 billion. The top line was slightly above the midpoint of management’s guidance of $1.42 billion (+/- 5%).
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Data center revenues of $765.3 million increased 54% year over year and 38% sequentially. The robust year-over-year and sequential increase was primarily driven by strong revenue growth across artificial intelligence (AI) and standard cloud infrastructure.
The segment accounted for 54% of the quarter’s total revenues, highlighting that it is currently MRVL’s largest end market. Our estimate for Data Center’s fourth-quarter revenues was pegged at $750.4 million.
Revenues from enterprise networking plunged 28% year over year and 2% sequentially to $265 million and accounted for 19% of the total revenues. The year-over-year decline was primarily due to the weak demand environment in this end market. Our estimate for enterprise networking’s fourth-quarter revenues was pegged at $257.6 million.
Carrier infrastructure revenues, which constituted 12% of the total revenues, declined 38% year over year and 46% sequentially to $170 million, mainly due to a soft demand environment. Our estimate for the division’s fourth-quarter revenues was pegged at $175.2 million.
Automotive/Industrial revenues declined 17% year over year and 22% sequentially to $82.3 million, mainly due to a sharp fall in the industrial portion of this end market. Revenues from this segment constituted 5% of the total revenues. Our estimate for the Automotive/Industrial’s fourth-quarter revenues was pegged at $85.3 million.
Consumer revenues, representing 10% of the total revenues, decreased 20% year over year and 15% sequentially to $143.9 million. Our estimate for Consumer’s fourth-quarter revenues was pegged at $143.5 million.
Marvell’s non-GAAP gross profit of $911.1 million reflected an increase of 1.2% on a year-over-year basis and 6% sequentially. The non-GAAP gross margin of 63.9% expanded 40 basis points (bps) on a year-over-year basis 330 bps sequentially, driven by a significantly better product mix.
Non-GAAP operating expenses were $428.5 million compared with $430.7 million in the year-ago quarter and $437.1 million in the previous quarter. Lower operating expenses reflect benefits from the successful completion of the company’s fiscal 2024 cost reduction plan.
Marvell’s non-GAAP operating margin of 33.8% expanded 70 bps from the year-ago quarter and 400 bps sequentially. The quarter-over-quarter expansion in the non-GAAP operating margin was mainly driven by an improved gross margin and lower operating expenses.
Balance Sheet and Cash Flow
Marvell exited the fourth quarter with cash and cash equivalents of $950.8 million compared with the previous quarter’s $725.6 million. The company’s long-term debt totaled $4.06 billion, slightly lower than the previous quarter’s $4.09 billion.
The company generated cash worth $546.6 million through operational activities in the fourth quarter and $1.37 billion in the fiscal 2024.
Marvell returned $152 million to shareholders by repurchasing $100 million worth of common stock and $52 million in dividend payments in the fourth quarter. During fiscal 2024, the company repurchased stocks worth $150 million and paid out $207 million in dividend payments.
Guidance
For the first quarter of fiscal 2025, Marvell expects revenues of $1.15 billion (+/- 5%), slightly lower than the Zacks Consensus Estimate of $1.36 billion. The non-GAAP gross margin is likely to be 62-63%, while non-GAAP operating expenses are estimated to be approximately $455 million.
The company projects non-GAAP earnings per share for the first quarter to be 23 cents (+/- 5 cents). The consensus mark for first-quarter non-GAAP earnings is currently pegged at 40 cents per share.
Zacks Rank & Other Stocks to Consider
Currently, Marvell carries a Zacks Rank #2 (Buy). Shares of MRVL have risen 41.1% year to date (YTD).
The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings has been revised 16.4% upward to $23.22 per share in the past 30 days, which suggests year-over-year growth of 79.2%. The long-term estimated earnings growth rate for the stock stands at 29.7%. Shares of NVDA have jumped 87.1% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 12 cents to $19.94 per share over the past 30 days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 44.7% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 3 cents to $4.06 per share in the past 30 days, which implies an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 16.4% YTD.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Marvell's (MRVL) Q4 Earnings Meet Estimates, Stock Falls
Marvell Technology (MRVL - Free Report) reported impressive results for the fourth quarter of fiscal 2024, wherein revenues outpaced the Zacks Consensus Estimate while non-GAAP earnings matched the same. The chipmaker’s fourth-quarter revenues and earnings came in line with the midpoint of management’s guidance.
Despite reporting decent fourth-quarter results, MRVL stock fell 7.7% during Thursday’s extended trading session as its guidance for the first-quarter fiscal 2025 top and bottom lines was weak.
Let’s delve deeper into the fourth-quarter performance.
Wilmington, DE-based Marvell reported non-GAAP earnings of 46 cents per share, which came in line with the Zacks Consensus Estimate as well as the midpoint of the company’s previous forecast of 46 cents (+/- 5 cents). Moreover, the bottom line was flat on a year-over-year basis.
The semiconductor company’s fourth-quarter revenues increased 1% year over year to $1.43 billion and surpassed the consensus mark of $1.42 billion. The top line was slightly above the midpoint of management’s guidance of $1.42 billion (+/- 5%).
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Marvell Technology, Inc. price-consensus-eps-surprise-chart | Marvell Technology, Inc. Quote
Quarterly Details
Data center revenues of $765.3 million increased 54% year over year and 38% sequentially. The robust year-over-year and sequential increase was primarily driven by strong revenue growth across artificial intelligence (AI) and standard cloud infrastructure.
The segment accounted for 54% of the quarter’s total revenues, highlighting that it is currently MRVL’s largest end market. Our estimate for Data Center’s fourth-quarter revenues was pegged at $750.4 million.
Revenues from enterprise networking plunged 28% year over year and 2% sequentially to $265 million and accounted for 19% of the total revenues. The year-over-year decline was primarily due to the weak demand environment in this end market. Our estimate for enterprise networking’s fourth-quarter revenues was pegged at $257.6 million.
Carrier infrastructure revenues, which constituted 12% of the total revenues, declined 38% year over year and 46% sequentially to $170 million, mainly due to a soft demand environment. Our estimate for the division’s fourth-quarter revenues was pegged at $175.2 million.
Automotive/Industrial revenues declined 17% year over year and 22% sequentially to $82.3 million, mainly due to a sharp fall in the industrial portion of this end market. Revenues from this segment constituted 5% of the total revenues. Our estimate for the Automotive/Industrial’s fourth-quarter revenues was pegged at $85.3 million.
Consumer revenues, representing 10% of the total revenues, decreased 20% year over year and 15% sequentially to $143.9 million. Our estimate for Consumer’s fourth-quarter revenues was pegged at $143.5 million.
Marvell’s non-GAAP gross profit of $911.1 million reflected an increase of 1.2% on a year-over-year basis and 6% sequentially. The non-GAAP gross margin of 63.9% expanded 40 basis points (bps) on a year-over-year basis 330 bps sequentially, driven by a significantly better product mix.
Non-GAAP operating expenses were $428.5 million compared with $430.7 million in the year-ago quarter and $437.1 million in the previous quarter. Lower operating expenses reflect benefits from the successful completion of the company’s fiscal 2024 cost reduction plan.
Marvell’s non-GAAP operating margin of 33.8% expanded 70 bps from the year-ago quarter and 400 bps sequentially. The quarter-over-quarter expansion in the non-GAAP operating margin was mainly driven by an improved gross margin and lower operating expenses.
Balance Sheet and Cash Flow
Marvell exited the fourth quarter with cash and cash equivalents of $950.8 million compared with the previous quarter’s $725.6 million. The company’s long-term debt totaled $4.06 billion, slightly lower than the previous quarter’s $4.09 billion.
The company generated cash worth $546.6 million through operational activities in the fourth quarter and $1.37 billion in the fiscal 2024.
Marvell returned $152 million to shareholders by repurchasing $100 million worth of common stock and $52 million in dividend payments in the fourth quarter. During fiscal 2024, the company repurchased stocks worth $150 million and paid out $207 million in dividend payments.
Guidance
For the first quarter of fiscal 2025, Marvell expects revenues of $1.15 billion (+/- 5%), slightly lower than the Zacks Consensus Estimate of $1.36 billion. The non-GAAP gross margin is likely to be 62-63%, while non-GAAP operating expenses are estimated to be approximately $455 million.
The company projects non-GAAP earnings per share for the first quarter to be 23 cents (+/- 5 cents). The consensus mark for first-quarter non-GAAP earnings is currently pegged at 40 cents per share.
Zacks Rank & Other Stocks to Consider
Currently, Marvell carries a Zacks Rank #2 (Buy). Shares of MRVL have risen 41.1% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , Meta Platforms (META - Free Report) and Amazon.com (AMZN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings has been revised 16.4% upward to $23.22 per share in the past 30 days, which suggests year-over-year growth of 79.2%. The long-term estimated earnings growth rate for the stock stands at 29.7%. Shares of NVDA have jumped 87.1% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 12 cents to $19.94 per share over the past 30 days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 44.7% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 3 cents to $4.06 per share in the past 30 days, which implies an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 16.4% YTD.