Marvell Technology Inc. (MRVL) shares jumped 14% in after-hours trading Wednesday, after the company reported fiscal fourth-quarter results that beat expectations and provided a bullish outlook.
Marvell reported fourth-quarter net revenue of $1.53 billion, up 16% year-over-year, and adjusted earnings per share of 54 cents, compared with 43 cents in the same quarter last year. Analysts surveyed by FactSet had been expecting revenue of $1.51 billion and EPS of 51 cents.
For the first quarter, Marvell expects net revenue of $1.51 billion, plus or minus $50 million, and adjusted EPS of 52 cents, plus or minus 5 cents. The FactSet consensus was for revenue of $1.50 billion and EPS of 50 cents.
“Marvell delivered a strong fiscal fourth quarter, driven by continued strength in our data center business and solid execution across the company,” said Matt Murphy, president and chief executive officer of Marvell. “We are pleased to report that we exceeded our guidance for both revenue and earnings per share.”
Murphy also highlighted the company’s diversified mix of customers and products. “We are well-positioned to benefit from secular trends such as the growth of cloud computing, 5G and the Internet of Things,” he said.
“Marvell just impressed Wall Street with good numbers plus a better story,” said Tristan Gerbie, an analyst at Baird. “The company’s diversification and strong execution are key differentiators.”
Gerbie raised his price target on Marvell to $90 from $80, and reiterated his outperform rating.