In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MRVL and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
In the last four quarters the company has met or beaten analysts' estimates. In the last quarter it reported $0.23 EPS, beating analyst estimates of $0.20.
The consensus EPS estimate is $0.27 based on 31 analysts' estimates, down from $0.38 a year ago. Revenue estimates are $855.01M, down from $897.52M a year ago. The median target price by analysts for the stock is $16.00.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On June 26, 2012, Northland Securities initiated an Outperform rating for the company.
- On June 21, 2012, Mizuho reiterated a Buy rating for the company.
- On June 4, 2012, JMP Securities upgraded the company from Mkt Underperform to Mkt Perform.
- On May 8, 2012, UBS downgraded the company from Buy to Neutral.
- On March 11, 2012, Avian initiated a Positive rating for the company.
- On February 13, 2012, The Benchmark Company downgraded the company from Buy to Hold.
- On July 11, 2012, Marvell announced that OnLive is using the ARMADA® 1500 HD Media SoC to power on-demand gaming in Google TVs and Google TV devices. OnLive delivers hundreds of high-end video games directly from the cloud to PCs, Macs, TVs, tablets and now, leveraging the ARMADA 1500 chipset, to Google TV, with no game console necessary.
- On June 29, 2012, Marvell announced that the ARMADA® 1500-powered Google TV devices passed Google's certification process. At the core of an increasing number of connected-home products, Marvell is determined to bring powerful and energy efficient devices at an attractive price point for consumers to enjoy. The leadership, vision and pervasiveness of Marvell's crucial presence in such platforms are transforming the way media is stored, delivered and consumed.
- On June 25, 2012, Marvell announced Samsung has released its new Android smartphone for China Mobile powered by Marvell's PXA920H Single-Chip solution, an advanced, highly integrated 3G platform with TD-SCDMA and GSM/EDGE communication support designed for multimedia-centric handsets. Samsung's new Galaxy i8250 smartphone represents an extension of Marvell's continued strategic collaboration for the TD market; the latest device is designed to bring the connected lifestyle to China's growing consumer base.
- On June 4, 2012, Marvell announced its ITU-T G.hn-compliant transceiver chipset will power T&W's new G.hn Powerline Adapter, offering a high level of performance and flexibility that greatly accelerates today's connected lifestyle.
- On June 4, 2012, Marvell announced its ITU-T G.hn-compliant transceiver chipset is at the heart of Delta Networks, Inc.'s (DNI's) new DH-ED31GP modem, offering a high level of performance and flexibility that is designed to greatly accelerate today's connected lifestyle.
- On May 30, 2012, Marvell announced its ARMADA® XP chipset is at the core of Dell's recently announced "Copper" ARM server. By enabling the ARM ecosystem, Dell is responding to the demands of customers who want greater density and power efficiency at a dramatically lower total cost of ownership (TCO). Dell is now delivering its Copper servers to select hyperscale customers and partners.
- On May 21, 2012, Marvell and ZTE announced a new Time Division Synchronous Code Division Multiple Access (TD-SCDMA) smartphone - the sub 1,000 RMB U880E - for China Mobile, the world's largest carrier with more than 650 million subscribers, expanding the companies' long-standing collaboration that delivers affordable, innovative mobile devices to the Chinese market. The U880E is the next-generation of ZTE's U880, also powered by Marvell, which is currently one of the best-selling 1,000 RMB smartphones in China.
- On May 17, 2012, Marvell Technology Group Ltd. reported financial results for the first quarter of fiscal 2013, ended April 28, 2012. Revenue for the first quarter of fiscal 2013 was $796 million, a 7 percent sequential increase from $743 million in the fourth quarter of fiscal 2012, ended January 28, 2012, and down slightly from $802 million in the first quarter of fiscal 2012, ended April 30, 2011. GAAP net income for the first quarter of fiscal 2013 was $95 million, or $0.16 per share (diluted), compared with GAAP net income of $81 million, or $0.13 per share (diluted), for the fourth quarter of fiscal 2012, and $147 million, or $0.22 per share (diluted), for the first quarter of fiscal 2012.
- On March 26, 2012, Marvell Technology Group announced that it has received notification of an unsolicited mini-tender offer by TRC Capital Corporation (TRC) to purchase up to 6 million shares of Marvell Technology Group common stock, or approximately 1% of the Company's outstanding common stock, at a price of $15 per share.
- On February 23, 2012, Marvell Technology Group announced that for first quarter of 2013, it expects revenues to be flat to up 6% sequentially and non-GAAP diluted earnings per share (EPS) to be about $0.20, plus or minus a couple of pennies.
Broadcom (NASDAQ:BRCM), NVIDIA (NASDAQ:NVDA), QUALCOMM (NASDAQ:QCOM), STMicroelectronics (NYSE:STM), and Texas Instruments (NASDAQ:TXN) are peers for comparison for Marvell and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Developments
- On August 9, 2012, NVIDIA Corp announced that for the third quarter of 2013, it expects revenue to be between $1.15 billion and $1.25 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $1.04 billion for the third quarter of 2013.
- On August 9, 2012, STMicroelectronics N.V. announced the launch of a chip-scale gyroscope for motion-sensing applications. ST's L3GD20H gyroscope measures only 3 x 3mm and 1mm high.
- On August 1, 2012, STMicroelectronics NV (NYSE:ST) announced that it has worked with the Museum of Contemporary Art in Taipei to enrich the experience of visitors to Taiwan-based Chinese film-director King Hu's works exhibition through the use of indoor navigation.
- On July 30, 2012, Texas Instruments Incorporated announced the pricing of two series of senior unsecured notes for an aggregate principal amount of $1.5 billion. The notes consist of the following: $750 million of 0.45% notes due August 3, 2015 $750 million of 1.65% notes due August 3, 2019 TI intends to use the net proceeds of this offering for general corporate purposes which, among other things, could include repurchases of common stock.
- On July 24, 2012, Broadcom Corporation announced that for the third quarter of 2012, it expects net revenue to be $2.0 billion to $2.15 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $2.11 billion for the third quarter of 2012.
- On July 24, 2012, QUALCOMM Inc. announced that Delta has agreed to integrate the Qualcomm Halo Wireless Electric Vehicle Charging (WEVC) system into its Delta E-4 Coupe electric vehicles, which are intended for deployment in Qualcomm's London WEVC trial.
- On July 23, 2012, Texas Instruments Incorporated announced that for the third quarter of 2012, it expects revenue to be in the range of $3.21-$3.47 billion and Earnings per share to be in the range of $0.34-$0.42. According to I/B/E/S Estimates, analysts are expecting the Company to report revenues of $3.54 billion and EPS of $0.50 for the third quarter of 2012.
- On July 18, 2012, QUALCOMM Inc. announced that for fiscal 2012, it expects revenues to be in the range of $18.7 billion - $19.1 billion compared to the prior range of $18.7 billion - $19.7 billion.
- On July 18, 2012, STMicroelectronics N.V. announced that it has introduced the industry's first digital radio chipset that enables simultaneous reception and processing of AM/FM and multiple digital-radio broadcasts (e.g. DAB+).
- On July 17, 2012, STMicroelectronics N.V. announced that it has revealed new surge protection devices certified to the automotive industry's specifications.
- On July 5, 2012, Broadcom Corporation And Emulex Corporation announced that the companies have entered into a partial settlement and worldwide patent license agreement relating to the patent litigation in the U.S. Federal District Court in Santa Ana, California.
- On July 3, 2012, Dow Jones reported that MIPS Technologies Inc. has signed a $26.5 million agreement that allows Broadcom Corp. to license its patents. Additionally, Broadcom has extended its license of the Company's architecture and core licenses.
- On July 2, 2012, STMicroelectronics NV and Harbin Institute of Technology (HIT), a Chinese university, announced the opening of a joint laboratory to encourage innovation in electronics.
- On June 28, 2012, STMicroelectronics N.V. announced that it has expanded its sensor portfolio with an ultra-compact, high-performance e-compass module. The integration of motion and magnetic sensing in a tiny 3x3x1mm package opens new possibilities for advanced navigation and location-based services in ever-sleeker portable consumer devices.
- On June 27, 2012, Broadcom Corporation announced that Wi-Fi Alliance selected Broadcom for its Wi-Fi CERTIFIED Passpoint Test Bed.
- On June 27, 2012, QUALCOMM Inc. and Akamai Technologies, Inc. announced that the two companies are collaborating on the implementation of new protocol enhancements for mobile devices.
- On June 26, 2012, STMicroelectronics N.V. announced that it is now delivering the first samples of its new STM32 F3 series of microcontrollers to OEM customers, enabling early evaluation of this new line in ST's product family featuring the ARMR Cortex-M core embedded.
- On June 18, 2012, Eurotech SpA announced that it has signed an agreement with NVIDIA to expand the Eurotech Aurora supercomputer product line with new energy-efficient, high-performance GPU-accelerated systems.
- On June 18, 2012, QUALCOMM Inc. announced that it has acquired Summit Microelectronics (Summit), a developer and provider of programmable power integrated circuits based in Sunnyvale, CA. All employees of Summit Microelectronics have joined Qualcomm's CDMA Technologies division.
- On June 14, 2012, STMicroelectronics NV announced the introduction of the "Mystique" family of products, high-speed active-protocol bi-directional converters for managing audio and video signals between DisplayPort and HDMI, two digital-display interface technologies used in computer and consumer electronics.
- On June 13, 2012, STMicroelectronics N.V. and Wasion Group announced the availability of NFC-enabled post-pay power meters for deployment in the municipal grid of ChongQing, China.
- On June 11, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it currently expects revenue to be in the range of $3.28-3.42 billion compared with the prior range of $3.22-3.48 billion and EPS to be in the range of $0.32-0.36 compared with the prior range of $0.30-0.38.
- On May 30, 2012, STMicroelectronics N.V. announced that during Annual General Meeting which was held in Amsterdam on May 30, 2012 it has approved the distribution of a cash dividend of USD 0.40 per share, to be paid in four equal quarterly installments, in June, August and December 2012 (November 29, 2012 in Europe) and February 2013 to shareholders of record in the month of each quarterly payment.
- On May 25, 2012, Funcom N.V. (Funcom) announced that it is working closely with NVIDIA for Funcom's upcoming multiplayer online game, The Secret World. Funcom and NVIDIA's engineering teams have been working together to make The Secret World graphically advanced.
- On May 24, 2012, Reuters reported that Bharti Airtel Limited agreed to buy a 49% stake in Qualcomm Inc's (QCOM.O) fourth-generation (4G) broadband venture in the country for $165 million.
- On May 16, 2012, Reuters reported that Bharti Airtel Limited is in advanced talks to buyout the Indian partners of QUALCOMM Inc. in a fourth-generation (4G) broadband venture in the country.
- On May 14, 2012, NVIDIA Corp. and Intellectual Ventures announced that they have jointly acquired a set of patents developed and owned by IPWireless. The portfolio comprises approximately 500 patents granted and pending in the wireless communications area, including essential concepts in LTE, LTE-Advanced and 3G/4G technologies.
- On May 11, 2012, NVIDIA Corp. announced that for second quarter of 2013, it expects revenue to be between $990 million and $1.05 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $978 million for second quarter of 2013.
The stock has a market capitalization of $6.73B and is currently trading at $11.94 with a 52 week range of $10.27 - $16.86. The stock's year-to-date performance has been -13.35%. It is currently trading above 20 and 50 SMA, but below 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.