J.P Morgan Comments On Marvell's Positive 3Q Earnings Surprise

Marvell MRVL posted solid F3Q11 results that were ahead of J.P Morgan's and consensus estimates. Oct-Q revenue of $959M was ~1% above ours and consensus estimates, while EPS of $0.45 was $0.02 ahead of J.P Morgan's and consensus estimates. Management guided for 4Q sales to decline 1-6% Q-Q, mainly driven by a 10% decline in the mobile/wireless segment due to a seasonal contraction in gaming console revenues. The storage and networking segments are expected to be flat. Also, J.P Morgan expects to see the ramp of MRVL's wireless baseband and combo connectivity (WLAN/BT) products into TD phones accelerate in 1H of next year. JPM's checks indicate that Marvell will be in RIM's 2nd-gen Playbook tablet device. J.P Morgan has an Overweight rating and $24 PT on MRVL MRVL is trading higher at $19.78