Needham & Company Remains Sidelined on Marvell Technology (MRVL) Following 4Q
Needham & Company reiterated a Hold rating on Marvell Technology (NASDAQ: MRVL) following the company's 4Q earnings report. NG GM was 19.4%, well ahead of 17.0% estimates, leading to NG EPS of $0.22 that beat $0.19 estimates.
Analyst Quinn Bolton commented, "Though we remain Hold rated, we are warming up to the MRVL story as the new management team continues to execute on transforming the business. Margins continue to beat on the upside as management drives a richer product mix, executes on operational efficiencies and streamlines OPEX. As a result, we now see a clear path to 60% GM and mid-20% OM and possibly higher. Management has also stepped up its capital return program, returning over $155MM to shareholders in buybacks and dividends in F4Q18. Our long hesitation on MRVL remains revenue growth and we expect this to be a highlight of next week's Analyst Day, in which we anticipate management will expand on potential growth drivers."
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Shares of Marvell closed at $15.85 yesterday.