Marvell Technology has recently reported its financial report for the first quarter of 2018, highlighting an earnings beat and a mixed fiscal outlook. The impressive report has also helped its stock performance edge higher during the release.
The California-based chipmaker reported an adjusted earnings of 32 cents per share, exceeding the 31 cents expectation. This was a 33% increase from last year’s record of the same quarter.
Additionally, Marvell’s sales generated $605 million which beat the $602 million estimated for the period. This is due to the improved operational efficiency and the improvements in its core business.
“Fiscal 2019 is off to a strong start, driven by the performance of our storage, networking and connectivity businesses which grew 7% year over year in Q1. Marvell’s R&D engine is executing well, and our newly announced products are fueling a growing design win pipeline. Overall, I’m pleased with the results and thank the entire Marvell team for their effort and contribution.” President and CEO Matt Murphy, told reporters.
In reaction to the report, the shares of the company climbed higher, ending the apparent bearish movement during the release. However, the stock declined again at the time of writing, dropping 18% to end at 21.93.
Marvell Technology Fiscal Outlook
Furthermore, Marvell has also provided a guidance for the second quarter of 2018. The company now expects its earnings per share to reach 34 cents on sales of $615 million. Additionally, analysts expect the company to earn only 33 cents per share on sales of $621 million.
As for the revenue, the company expects its revenue to reach between $600 million and $630 million. Gross margin for the second quarter is expected to be around 64% as well.
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