Marvell Technology Rises 3% After Q4 Results

Marvell Technology

released its fiscal fourth-quarter earnings results on Thursday after the closing bell. During Friday's trading session, the stock has climbed around 3 percent and was last sitting at $9.77. The stock has had a difficult past 52-weeks, falling almost 39 percent. Marvell is a fabless semiconductor provider of application-specific standard products. The company makes specialized chips for mobile phones and storage devices. "Fiscal year 2013 was a disappointing year for Marvell. Industry hard disk drive unit shipments declined for the year offsetting share gains, the networking end market was relatively flat and we endured a product transition in Mobile. Despite the revenue decline, Marvell remained profitable and generated $626 million in free cash flow while simultaneously continuing investments in several key initiatives," said Dr. Sehat Sutardja, Marvell's Chairman and Chief Executive Officer. The stock trades at a fairly inexpensive valuation due to headwinds in its markets and its exposure to declining PC demand. David Einhorn's Greenlight Capital hedge fund was the largest shareholder in the company as of December 31, 2012 with a 9.68 percent ownership position. For the quarter, the company reported net income of $50.2 million or $0.09 per share, compared to $80.7 million or $0.13 per share, in last year's corresponding quarter. On an adjusted basis, Marvell reported net income of $104.4 million or $0.19 per share, compared to $126.6 million or $0.21 per share, in last year's fourth-quarter. This compared to Wall Street analysts' consensus EPS estimates of $0.13. Net revenue in the period was up 4 percent to $775.29 million from $742.70 million last year. This easily beat Wall Street consensus revenue expectations of $720.89 million. Looking ahead to the fiscal first-quarter, Marvell guided for adjusted earnings per share of $0.14, plus or minus $0.02. Revenue is expected to be between $700 million and $740 million. Currently, analysts anticipate that Marvell will report EPS of $0.13 on revenue of $707.82 million for the first-quarter.