Post Earnings Coverage as Marvell's Q4 Adjusted EPS Rose Y-o-Y; Beat Estimates

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LONDON, UK / ACCESSWIRE / March 20, 2017 / Active Wall St. announces its post-earnings coverage on Marvell Technology Group Ltd. (NASDAQ: MRVL) ("Marvell") as the Company posted its financial results for the fourth quarter fiscal 2017 (Q4 FY17) and full year fiscal 2017 (FY17) on March 02, 2017. The Santa Clara, California-based Company's quarterly non-GAAP diluted EPS rose on a year-over-year basis; outperforming market consensus estimates. Register with us now for your free membership at:

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One of Marvell Technology's competitors within the Semiconductor - Integrated Circuits space, AXT, Inc. (NASDAQ: AXTI), reported on February 22, 2017, its financial results for the fourth quarter and fiscal year, ended December 31, 2016. AWS will be initiating a research report on AXT, Inc. in the coming days.

Today, AWS is promoting its earnings coverage on MRVL; touching on AXTI. Get our free coverage by signing up to:

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Earnings Reviewed

During the quarter ended on January 28, 2017, Marvell's net revenues fell to $571.40 million from $626.09 million recorded at the end of Q4 FY16. However, net revenue numbers for Q4 FY17 topped market consensus estimates of $565.8 million.

The chipmaker reported GAAP net loss from continuing operations of $76.88 million, or $0.15 loss per diluted share, in Q4 FY17 against GAAP net income from continuing operations of $77.45 million, or $0.15 per diluted share, in Q4 FY16. Meanwhile, the Company's non-GAAP net income from continuing operations increased during Q4 FY17 to $114.17 million, or $0.22 per diluted share, from $106.93 million, or $0.20 per diluted share, in the previous year's same quarter. Wall Street had expected the Company to report non-GAAP net income of $0.19 per diluted share.

In FY17, Marvell's net revenue came in at $2.32 billion compared to $2.65 billion in the previous year. The Company reported GAAP net income from continuing operations of $43.99 million, or $0.09 per diluted share in FY17 versus GAAP net loss from continuing operations of $769.15 million, or $1.51 loss per diluted share, in FY16. Furthermore, the Company's non-GAAP net income from continuing operations during FY17 was $330.78 million, or $0.63 per diluted share, compared to $225.83 million, or $0.43 per diluted share, in FY16.

Operational Metrics

For the reported quarter, the Company's GAAP gross profit continuing operations came in at $327.52 million, 57.3% of net sales, compared to $357.78 million, or 57.1% of net sales, in the prior year's same quarter. Meanwhile, non-GAAP gross profit for the reported quarter was $329.16 million, or 57.6% of net sales, versus $359.97 million, or 57.5% of net sales, in Q4 FY16. The Company's total GAAP operating expenses from continuing operations for Q4 FY17 came in at $339.65 million compared to $270.20 million in Q4 FY16. Total non-GAAP operating expenses during Q4 FY17 were $218.23 million compared to $242.91 million in the previous year's comparable quarter. Furthermore, the Company reported operating loss of $12.13 million during Q4 FY17 compared to operating income of $87.58 million in Q4 FY16.

Cash Flow & Balance Sheet

During Q4 FY17, Marvell's net cash provided by operating activities were $118.85 million, up from $53.31 million in Q4 FY16. As of January 28, 2017, Marvell had $1.67 billion in cash, cash equivalents, and short-term investments compared to $2.28 billion at the close of books on January 30, 2016.

Dividend and Share Repurchase

In a separate press release on March 16, 2017, Marvell's Board of Directors declared a quarterly dividend of $0.06 per share of common stock, payable on April 20, 2017, to stockholders of record as of April 04, 2017.

During Q4 FY17, the Company returned $155 million in cash to shareholders through $30 million in dividend payments and $125 million in share repurchases.

Outlook

In its guidance for Q1 FY18, Marvell's management expects revenue to be $570 million with plus or minus 2%. The Company's Q1 FY18 GAAP and non-GAAP gross margin is estimated to be approximately 59%. GAAP operating expenses during Q1 FY18 are forecasted to be in the range of $250 million to $265 million, while non-GAAP operating expenses are anticipated to be in the range of $220 million to $225 million. The Company expects GAAP diluted EPS from continuing operations for Q1 FY18 to be between $0.12 and $0.18. Furthermore, non-GAAP diluted EPS from continuing operations are projected to be in the range of $0.19 to $0.23.

Stock Performance

On Friday, March 17, 2017, the stock closed the trading session at $16.12, marginally rising 0.31% from its previous closing price of $16.07. A total volume of 5.02 million shares have exchanged hands, which was higher than the 3-month average volume of 4.83 million shares. Marvell Technology's stock price surged 13.04% in the last three months, 29.39% in the past six months, and 60.23% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 16.22%. The stock is trading at a PE ratio of 199.01 and has a dividend yield of 1.49%.

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