Thu, Jan. 29, 12:55 PM| Comment!
Nov. 21, 2014, 11:17 AM
- Though weak baseband processor sales are weighing on Marvell (NASDAQ:MRVL) near-term, management "expects their mobile business to turn around starting in the April quarter, and for mobile unit shipments to double y/y in FY16," notes Stifel's Kevin Cassidy. He's reiterating a Buy, albeit while cutting his target by $2 to $16 and voicing some concerns about ASP/margin erosion.
- RBC is also staying bullish, predicting mobile sales will rebound next year and that Marvell's $1.54B Carnegie Mellon infringement verdict will ultimately be lowered. The firm has also cut its target, and so have Nomura and Deutsche, but no downgrades have arrived.
- On the CC (transcript), CEO Sehat Sutardja mentioned mobile sales fell 13% Q/Q in FQ3 due to customer mix (read: weak Samsung demand) and a "shift from the carrier-driven models to the open market in China, which required full turnkey [platform] support." Turnkey revenue is expected to arrive in FQ2 of next year.
- Networking chip sales fell 7% Q/Q due to weak carrier capex, but is expected to be flat in FQ4. Storage revenue rose 3%, with both hard drive and SSD controller revenue growing. Marvell says it remains the top SSD controller vendor, and will begin seeing revenue from mobile SSD offerings next year.
- A mix shift away from mobile contributed to Marvell's better-than-expected gross margin.
- FQ3 results, guidance/details.
Nov. 20, 2014, 4:21 PM
- Marvell (NASDAQ:MRVL) expects FQ4 revenue of $880M-$900M and EPS of $0.22-$0.26, almost entirely below a consensus of $930.9M and $0.26.
- No explanation is given in the FQ3 report for the company's big revenue miss; analysts have raised concerns about Marvell's China-dependent baseband chip sales.
- Helping EPS meet estimates: FQ3 gross margin was 51%, +40 bps Q/Q and +70 bps Y/Y, and at the high end of a 49%-51% guidance range. FQ4 GM guidance is at 49.5%-51.5%.
- Also helping: GAAP opex fell 3% Y/Y to $359.6M, and $45M was spent on buybacks.
- FQ3 results, PR
Nov. 20, 2014, 4:06 PM| Comment!
Nov. 19, 2014, 5:35 PM
Oct. 31, 2014, 11:31 AM
- Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
- Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
- On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
- Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
- Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%. ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
- Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Aug. 22, 2014, 6:33 PM
- Down initially in response to its soft FQ3 guidance, Marvell (MRVL +1.7%) finished the day moderately higher. Brean and RBC lowered their targets, but both maintain bullish ratings.
- On the FQ2 CC (transcript), CEO Sehat Sutardja mentioned both FQ2 and FQ3 sales have been hurt by soft 3G baseband chip demand from a major Asian client (widely believed to be Samsung). At the same time, he noted both Marvell's storage (hard drive/SSD controller) and networking chip sales rose 6% Q/Q.
- Flat to "modest" Q/Q growth is expected for both storage and networking in FQ3. Sutardja states Marvell maintains a 60%+ hard drive controller share, and remains the top supplier of SSD controllers (no specific number is given).
- FBR's Chris Rolland thinks some investors will view the 3G weakness as "neutral to positive," given the business carries "significantly below average" margins and profitability. "At some point, we believe investors will look past the 'distraction' that is mobile and recognize the solid storage and networking business underneath, but timing remains uncertain."
- UBS' Stephen Chin is more cautious: He thinks getting Marvell's baseband ops (heavily dependent on China) to reach breakeven will "remain challenging," given demand is shifting towards 4G phones faster than Marvell can ramp 4G baseband volumes, and that Qualcomm and MediaTek provide tough competition. Broadcom can sympathize.
Aug. 21, 2014, 4:38 PM
- Though Marvell (NASDAQ:MRVL) posted in-line FQ2 revenue and beat EPS estimates, it's guiding for FQ3 revenue of $960M-$1B and EPS of $0.29 (+/- $0.02), below a consensus of $1.01B and $0.32. No explanation is provided in the earnings release for the outlook.
- FQ2 gross margin was 50.6%, +180 bps Q/Q and -140 bps Y/Y, and near the high end of a 49%-51% guidance range (drove the EPS beat). FQ3 GM guidance is also at 49%-51%.
- GAAP opex fell 2% Y/Y to $363.4M (compares with a slight revenue increase), with R&D spend nearly flat at $294.8M. No buybacks were carried out.
- FQ2 results, PR
Aug. 21, 2014, 4:08 PM| Comment!
Aug. 20, 2014, 5:35 PM
May. 22, 2014, 4:38 PM
- Marvell (MRVL) expects FQ2 revenue of $940M-$980M and EPS of $0.26-$0.30, largely above a consensus of $930.1M and $0.26.
- FQ1 gross margin was 48.8%, -130 bps Q/Q and -580 bps Y/Y, and missing guidance of 49%-51%. That resulted in EPS only moderately beating estimates in spite of a huge revenue beat. Nonetheless, Marvell has set an FQ2 guidance range of 49%-51%.
- Better-than-expected demand for Marvell's 4G LTE baseband processors contributed to the revenue beat. The company recently began shipping products for this market, which has long been dominated by Qualcomm, and has scored design wins with Chinese OEMs.
- Opex rose 4% Y/Y, well below rev. growth of 30%. No buybacks take place in the quarter.
- MRVL -0.7% AH. FQ1 results, PR
May. 22, 2014, 4:08 PM| Comment!
May. 21, 2014, 5:35 PM
May. 1, 2014, 10:06 AM
- Like Seagate (STX -4%), Western Digital (WDC -6.1%) missed FQ3 revenue estimates while beating EPS forecasts. Also like Seagate, it offered light FQ4 guidance on its CC (transcript): Revenue of $3.5B-$3.6B and EPS of $1.65-$1.75 vs. a consensus of $3.72B and $1.89.
- While Seagate estimates March quarter industry hard drive shipments totaled 138M, Western pegs them at 137M. More importantly, the company expects shipments to fall to 130M in the June quarter.
- Goldman notes hyperscale data center owners (Google, Facebook, Amazon, etc.) are getting more efficient with their storage usage, and that this is affecting both Western and Seagate. Seagate is also dealing with inventory issues at enterprise storage OEMs; Western isn't reporting anything similar.
- With SSDs continuing to encroach on hard drives, Western's enterprise SSD sales grew to $134M (+46% Y/Y, still less than 4% of sales) in FQ3, and are expected to outgrow the broader market going forward. Non-PC applications made up 53% of total revenue.
- Western's ASP fell $2 Q/Q to $58 due to.a mix shift towards console hard drive sales. In spite of the ASP drop, gross margin was 30.1%, flat Q/Q and up 90 bps Y/Y, and above guidance of 29.5%. A 29.5% GM is forecast for FQ4.
- $244M was spent on buybacks, up from $150M in FQ2. Free cash flow was $536M vs. $539M a year ago.
- Hard drive controller supplier Marvell (MRVL -1%) is off moderately.
Feb. 20, 2014, 5:41 PM
- Aruba Networks (ARUN) expects FQ3 revenue of $178M-$182M and EPS of $0.19-$0.20, largely favorable to a consensus of $174.6M and $0.19. The company has also announced a new $200M buyback authorization, and says the $200M authorized in October has been spent. Shares +4.8% AH. (FQ2 results, PR)
- Marvell (MRVL) expects FQ1 revenue of $870M-$910M and EPS of $0.20-$0.24 vs. a consensus of $848.9M and $0.21. Shares -2.6% AH. (FQ4 results, PR)
- Maxwell (MXWL) expects Q1 revenue to be "flat to slightly up" in Q1 from a Q4 level of $39M. The Q1 consensus is at $39.2M. Shares -7.2% AH. (Q4 results, PR)
- QLIK expects Q1 revenue of $110M-$114M and EPS of -$0.14 to -$0.12, vs. a consensus of $113.2M and -$0.05. Full-year guidance is for revenue of $545M-$555M and EPS of $0.23-$0.27 vs. a consensus of $550.4M and $0.41. Shares +1% AH. Expectations have been muted. (Q4 results, PR)
Feb. 20, 2014, 4:08 PM| Comment!
MRVL vs. ETF Alternatives
Other News & PR