Research Desk Line-up: Analog Devices Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Marvell Technology Group Ltd (NASDAQ: MRVL), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=MRVL, following the Company's disclosure of its financial results on August 24, 2017, for the second quarter fiscal 2018 (Q2 FY18). The Santa Clara, California-based Company's non-GAAP diluted EPS rose on a year-over-year basis; outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Semiconductor - Integrated Circuits industry. Pro-TD has currently selected Analog Devices, Inc. (NASDAQ: ADI) for due-diligence and potential coverage as the Company announced on August 30, 2017, its financial results for Q3 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Analog Devices when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MRVL; also brushing on ADI. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=MRVL
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Earnings Reviewed
During the quarter ended on July 29, 2017, Marvell Technology's net revenues increased to $604.75 million from $597.35 million recorded at the end of Q2 FY17. Net revenue numbers for Q2 FY18 topped the market consensus estimates of $600.3 million.
The chipmaker reported GAAP net income from continuing operations of $135.45 million, or $0.26 per diluted share, in Q2 FY18, up from $62.47 million, or $0.12 per diluted share, in Q2 FY17. The Company's non-GAAP net income from continuing operations increased to $153.47 million, or $0.30 per diluted share, during Q2 FY18 from $98.55 million, or $0.19 per diluted share, in the previous year's corresponding quarter. Meanwhile, Wall Street had expected the Company to report non-GAAP net income of $0.28 per diluted share.
Operational Metrics
For the reported quarter, the Company's GAAP gross profit came in at $365.18 million, or 60.4% of net revenues, compared to $326.92 million, or 54.7% of net revenues, in the prior year's same quarter. Meanwhile, non-GAAP gross profit was $369.99 million, or 61.2% of net revenues, for Q2 FY18 versus $329.64 million, or 55.2% of net revenues, in Q2 FY17.
The Company's total GAAP operating expenses came in at $240.82 million for Q2 FY18 compared to $276.56 million in Q2 FY17. Total non-GAAP operating expenses were $214.22 million during Q2 FY18 versus $243.19 million in the previous year's comparable quarter. The Company reported operating income of $124.36 million during Q2 FY18 compared to operating income of $50.36 million in Q2 FY17. Furthermore, the Company non-GAAP operating margin improved to 25.8% in Q2 FY18 from 14.5% in the last year's comparable quarter.
Revenue Segmentation
Marvell Technology's Storage segment's revenues grew 13% to $311.50 million, or 52% of total revenues, in Q2 FY18 from $275.34 million, or 46% of total revenues, in the previous year's corresponding quarter. Networking segment reported revenues of $147.25 million, or 24% of total revenues, in Q2 FY18 compared to $156.61 million, or 26% of total revenues, in Q2 FY17.
In the reported quarter, the Company's revenues from its Connectivity segment rose 6% y-o-y to $98.57 million, or 16% of total revenues, from $92.69 million, or 16% of total revenues, in the prior year's same quarter. The Company's total core earnings increased to $557.32 million, or 92% of total revenues, in Q2 FY18 from $524.65 million, or 88% of total revenues, in Q2 FY17. Meanwhile, other revenues declined to $47.43 million, or 8% of total revenues, during Q2 FY18 from $72.70 million, or 12% of total revenues, in prior year's same period.
Cash Flow & Balance Sheet
During Q2 FY18, Marvell Technology's net cash provided by operating activities were $101.25 million, up from $59.28 million in Q2 FY17. As on July 29, 2017, Marvell Technology had $630.50 million in cash and cash equivalents compared to $814.09 million at the close of books on January 28, 2017.
Outlook
In its guidance for Q3 FY18, Marvell Technology's management expects revenue to be in the range of $595 million to $625 million. The Company's Q3 FY18 GAAP and non-GAAP gross margin is estimated to be between 61% and 62%. GAAP operating expenses are forecasted to be in the range of $230 million to $240 million during Q3 FY18, while non-GAAP operating expenses are anticipated to be in the band of $205 million to $210 million. The Company expects GAAP diluted EPS from continuing operations to be between $0.25 and $0.31 for Q3 FY18. Furthermore, non-GAAP diluted EPS from continuing operations are projected to be in the range of $0.30 to $0.34.
Stock Performance
On Wednesday, September 13, 2017, the stock closed the trading session at $17.82, rising 1.25% from its previous closing price of $17.60. A total volume of 6.07 million shares have exchanged hands. Marvell Technology's stock price soared 14.60% in the last one month, 11.37% in the past six months, and 43.13% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 28.48%. The stock is trading at a PE ratio of 39.60 and has a dividend yield of 1.35%. The stock currently has a market cap of $8.95 billion.
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