Despite Strong Results Marvell Tech (MRVL) Trades Lower

Shares of Marvell Technology Group Ltd (NASDAQ: MRVL) are 10% lower today following earnings and guidance reported after the close Thursday. While Marvell Technology reported solid Q4 results, guidance wasn't as robust.

Marvell Technology reported Q4 EPS of $0.20, 9 cents better than the analyst estimate of $0.11. Revenues rose 36% to $845 million, versus the consensus of $782.65 million. Marvell sees Q1 revenues of $775-$785 million, versus the consensus of $763.9 million, a sequentially decline of about 8%.

In comments following the results, Goldman Sachs said higher operating costs may limit profit growth. On the positive side, an analyst at Deutsche Bank raised estimates on the company and reiterated their Buy rating and $16 price target, calling the results strong and highlighting margin expansion. [LJ]

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