Marvell (MRVL) Shares Rallying as Traders Cheer Q2 Guidance

Marvell Technology Group Ltd. (Nasdaq: MRVL) shares have reversed a decline in the after-hours session Thursday following strong second-quarter earnings guidance on its conference call (see end of our note).

First-quarter revenue fell 6.2 percent from $855.58 million in the year-ago quarter to $802.4 million. The number missed consensus views calling for a stronger $826.12 million in sales.

Net income fell 29 percent from $205.77 million to $146.86 million, or 22 cents per diluted share. Adjusting for certain items, earnings came in at a healthier 29 cents, but still 1 cent shy of the Street estimate.

Non-GAAP gross margin fell 210 basis points to 58.5 percent.

"The results for our first quarter reflected the typical seasonality of our consumer centric end markets," CEO Dr. Sehat Sutardja remarked. "We remain confident that the investments we are making such as in TD-SCDMA and SSD will result in improved results throughout the year."

UPDATE: On its call, a Marvell (Nasdaq: MRVL) has offered some Q2 guidance:

Sees sales of $870-$910 million, vs. the consensus of $875.76 million.

Sees adj-EPS of 35-39c, vs. the consensus of 33c.

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