Chipmaker Marvell Technology Group (MRVL) late Thursday beat Wall Street’s estimates for its fiscal first quarter and guided higher for the current period. The Marvell earnings report sent MRVL stock higher in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 18 cents a share on sales of $693.6 million in the quarter ended May 2. Analysts expected Marvell earnings of 14 cents a share on sales of $679 million. On a year-over-year basis, Marvell earnings rose 13% while sales climbed 5%.
Marvell attributed the better-than-expected results to stronger demand for its networking products for the data center and 5G wireless infrastructure markets.
For the current quarter, Marvell expects to earn an adjusted 20 cents a share on sales of $720 million. That’s based on the midpoint of its guidance. Wall Street had predicted Marvell earnings of 16 cents a share on sales of $689 million in the fiscal second quarter. In the year-earlier period, Marvell earnings were 16 cents a share on sales of $662.5 million.
Marvell Earnings News: Covid-19 Impact Waning
“While we did experience some Covid-19 supply chain impacts on our storage business in the first quarter, we expect a bounce back in the second quarter and we project our networking business to continue to grow,” Chief Executive Matt Murphy said in the Marvell earnings news release.
Marvell provided a wider than usual revenue-guidance range for the second quarter because of uncertainties related to the coronavirus pandemic. Its outlook also considers the U.S. government’s export restrictions on certain Chinese customers, including Huawei.
MRVL Stock Pops In Late Trading
In after-hours trading on the stock market today, MRVL stock rose 5.8%, near 31.70. During the regular session, ahead of the Marvell earnings report, MRVL stock dropped 2.4% to 29.97.
On April 17, MRVL stock broke out of a double-bottom base at a buy point of 25.90, according to IBD MarketSmith charts. For the last three days, it has been trading in or near the 20%-25% profit-taking zone, based on IBD investing guidelines.
Elsewhere in the chip sector, Semtech (SMTC) stock jumped on Thursday after the Camarillo, Calif.-based company posted better-than-expected quarterly results late Wednesday. Semtech stock rose 2.5% to 51.44.
Semtech earned an adjusted 35 cents a share, up 3% year over year, on sales of $132.7 million, up 1%, in its fiscal first quarter ended April 26. Analysts had expected earnings of 32 cents a share on sales of $129.3 million.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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