Canaccord Genuity Morning Coffee on Marvell Tech (MRVL): Marvel at These Results
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Price: $62.13 -4.77%
Rating Summary:
45 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
45 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Canaccord Genuity Morning Coffee on Marvell Tech (Nasdaq: MRVL): Marvel at these results.
Marvell reported revenue and earnings above the consensus view after Thursday’s close, subsequent to a preannouncement on January 27. Revenues and EPS were $742.7 million and $0.21, compared to consensus estimates of $740.3 million and $0.18 and Canaccord Genuity Technology Analyst Bobby Burleson’s estimates of $742.0 million and $0.18. The company attributed the weaker-than-originally-anticipated sales to a reduction in hard drive shipments following the Thailand floods, soft demand for mobile and wireless products (especially in China), and normal seasonality. During the quarter, Marvell experienced sequential declines in all end markets, although Storage saw the steepest decline, down 31%. Revenue generated by Mobile & Wireless declined 21% quarter-over-quarter and Networking sales were down 1% from the prior quarter. Management noted the impact from the Japan earthquake, the Thailand floods (~4%) and a product transition at one of its largest customer’s negatively impacted revenue by 10% in F12. Marvell repurchased 13.5 million shares in Q4 for $186 million. Following the results, Burleson left his earnings estimates for the company unchanged at $1.10 and $1.36 per share for 2012 and 201, respectively. His revenue estimates are increased slightly. He now forecasts 2012 revenue of $3.47 billion, up from $3.425 billion and 2013 revenue of $3.855 billion, up from $3.755 billion. He remains bullish on Marvell due to tailwinds from recovering HDDs and a looming TD smartphone ramp. He believes strong SSD controller growth in the quarter bodes well for the company’s ability to maintain market share leadership in this important storage product cycle.
Marvell reported revenue and earnings above the consensus view after Thursday’s close, subsequent to a preannouncement on January 27. Revenues and EPS were $742.7 million and $0.21, compared to consensus estimates of $740.3 million and $0.18 and Canaccord Genuity Technology Analyst Bobby Burleson’s estimates of $742.0 million and $0.18. The company attributed the weaker-than-originally-anticipated sales to a reduction in hard drive shipments following the Thailand floods, soft demand for mobile and wireless products (especially in China), and normal seasonality. During the quarter, Marvell experienced sequential declines in all end markets, although Storage saw the steepest decline, down 31%. Revenue generated by Mobile & Wireless declined 21% quarter-over-quarter and Networking sales were down 1% from the prior quarter. Management noted the impact from the Japan earthquake, the Thailand floods (~4%) and a product transition at one of its largest customer’s negatively impacted revenue by 10% in F12. Marvell repurchased 13.5 million shares in Q4 for $186 million. Following the results, Burleson left his earnings estimates for the company unchanged at $1.10 and $1.36 per share for 2012 and 201, respectively. His revenue estimates are increased slightly. He now forecasts 2012 revenue of $3.47 billion, up from $3.425 billion and 2013 revenue of $3.855 billion, up from $3.755 billion. He remains bullish on Marvell due to tailwinds from recovering HDDs and a looming TD smartphone ramp. He believes strong SSD controller growth in the quarter bodes well for the company’s ability to maintain market share leadership in this important storage product cycle.
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