Citigroup Lowers Marvell Estimates; PT Remains Unchanged

Marvell Technology Group MRVL reported 3Q11 (Oct) results consistent with Citigroup's previewed expectations: revenues slightly ahead of consensus led by better than expected HDD sales and hampered by weaker networking sales. “However, while we had expected guidance would reflect sequential declines, the degree of decline was worse than our expectations with Mobile & Wireless in particular surprising to the downside,” Citigroup writes. “Despite this revenue shortfall, better-than-expected operating expenses leave our EPS relatively unchanged. As a result, we are lowering our revenue estimates for MRVL as tabulated below, but our price target remains unchanged.” Marvell Technology currently trades at 18.94.