Latest news with #MattMurphy
Yahoo
2 days ago
- Business
- Yahoo
Marvell Technology Inc (MRVL) Q1 2026 Earnings Call Highlights: Record Revenue and Robust AI ...
Revenue: $1.895 billion, 4% sequential increase, 63% year-over-year growth. Data Center Revenue: $1.44 billion, 5% sequential growth, 76% year-over-year growth. Enterprise Networking Revenue: $178 million. Carrier Infrastructure Revenue: $138 million. Consumer Revenue: $63 million, 29% sequential decline. Automotive and Industrial Revenue: $76 million, 12% sequential decline. GAAP Gross Margin: 50.3%. Non-GAAP Gross Margin: 59.8%. GAAP Operating Expenses: $682 million. Non-GAAP Operating Expenses: $486 million. GAAP Operating Margin: 14.3%. Non-GAAP Operating Margin: 34.2%. GAAP Earnings Per Share: $0.20. Non-GAAP Earnings Per Share: $0.62, 158% year-over-year growth. Cash Flow from Operations: $333 million. Stock Repurchases: $340 million. Total Debt: $4.2 billion. Cash and Cash Equivalents: $886 million. Second Quarter Revenue Guidance: $2 billion at midpoint, 57% year-over-year growth. Second Quarter Non-GAAP Gross Margin Guidance: 59% to 60%. Second Quarter Non-GAAP Earnings Per Share Guidance: $0.62 to $0.72. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marvell Technology Inc (NASDAQ:MRVL) delivered record revenue of $1.895 billion for the first quarter of fiscal 2026, reflecting a 4% sequential increase and a strong 63% year-over-year growth. The data center end market achieved record revenue of $1.44 billion, growing 5% sequentially and 76% year-over-year, driven by robust AI demand. Marvell significantly increased stock repurchases in the first quarter, buying back $340 million, up from $200 million in the prior quarter. The company announced the sale of its automotive Ethernet business to Infineon for $2.5 billion, providing additional flexibility in capital allocation strategy. Marvell is forecasting second-quarter revenue of $2 billion at the midpoint of guidance, representing 57% year-over-year growth and setting another record revenue level. The consumer end market saw a 29% sequential decline in revenue, primarily driven by seasonality and gaming demand. The automotive and industrial end market experienced a 12% sequential decline in revenue, with industrial order patterns being lumpy. GAAP operating expenses were $682 million, including stock-based compensation and other costs, impacting overall profitability. Non-GAAP gross margin was 59.8%, slightly below expectations, partly due to the lower-margin custom silicon business. There are ongoing macroeconomic uncertainties that could impact future growth, requiring close monitoring of the broader environment. Q: What is the direction of content in Marvell's next-generation programs, and are you exclusive on these 3-nanometer XPUs? A: Matt Murphy, CEO, clarified that Marvell is the incumbent for the current generation of AI XPUs and has secured 3-nanometer wafer and advanced packaging capacity for 2026. While acknowledging that customers may pursue multiple paths to meet their requirements, Marvell expects its custom silicon revenue to continue growing on a multiyear, multigenerational basis with its customers. Q: How does Marvell plan to support a broader customer base beyond its initial engagements? A: Matt Murphy, CEO, stated that Marvell has the capacity to expand its portfolio and engagements, supported by increased R&D spending and reallocation of resources towards data center and AI opportunities. Marvell is well-positioned to support multiple engagements across various programs, which will be detailed at their upcoming AI investor event. Q: Can you discuss Marvell's positioning in 200 gig SerDes technology and the relationship with NVIDIA? A: Matt Murphy, CEO, emphasized Marvell's best-in-class SerDes technology, with leadership in 200 gig and 400 gig per lane demonstrations. Regarding the NVLink fusion partnership with NVIDIA, Murphy highlighted the complementary role of custom solutions and Marvell's engagement in enabling customers to leverage NVIDIA's rack scale solutions. Q: Can you break down data center revenue and provide insights into AI business growth? A: Matt Murphy, CEO, noted that AI has become the majority of Marvell's data center revenue and is on track to become the majority of the company's overall revenue. While not providing specific quarterly breakdowns, Murphy indicated that AI continues to be the fastest-growing portion of their data center business. Q: What are Marvell's expectations for the second half of the year, particularly for custom and enterprise businesses? A: Matt Murphy, CEO, expects continued growth across the board, driven by AI demand and recovery in enterprise networking and carrier infrastructure. While not providing specific quarterly guidance, Murphy expressed optimism for fiscal 2027, supported by articulated growth drivers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Marvell's narrow Q1 earnings beat fails to wow Wall Street
Marvell Technology (MRVL) stock is under pressure after the company's first quarter results came in just above expectations. First quarter net revenue was $1.9 billion in the first quarter, beating estimates of $1.88 billion, while adjusted earnings per share (EPS) were $0.62, above the expected $0.61. The company's sales and earnings outlook for the upcoming quarter were roughly in line with analyst estimates. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Marvell uh Technologies first quarter numbers. Those shares little changed in after hours. Uh, first quarter earnings per share coming in at 62 cents. That's just a penny above what analysts had been anticipated. Revenue also largely in line at $1.9 billion, $1.88 billion was the average analyst estimate. And looking here at what the company is looking for for the second quarter, um, it sees adjusted earnings per share of 62 to 72 cents. Analysts had been anticipating 67 cents. Um, and it looks like its revenue forecast also basically the midpoint of it is in line with what analysts had been anticipating. So again, the shares not doing a heck of a lot in response. Yeah, and the stock was already down plenty hard in 2025 heading into this print. I do see statement from CEO Matt Murphy sounding a confident tone here, talking about record revenue, talking about momentum being fueled by strong AI demand in the data center and market. Uh revenue has benefiting from the rapid scaling of our custom silicon programs. Of course, that's what Marvell does, right? Making chips for data centers, networking, other equipment. Um, also talking about a a AI investor event coming up on June 17th. So if you're in this name, you're circling the calendar on there, but you could see the stock down about 2.5. Yeah, now it's extending some of those declines, indeed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Marvell Technology (NASDAQ:MRVL) Q1: Beats On Revenue, Quarterly Revenue Guidance Slightly Exceeds Expectations
Networking chips designer Marvell Technology (NASDAQ: MRVL) announced better-than-expected revenue in Q1 CY2025, with sales up 63.3% year on year to $1.90 billion. Guidance for next quarter's revenue was better than expected at $2 billion at the midpoint, 1% above analysts' estimates. Its non-GAAP profit of $0.62 per share was in line with analysts' consensus estimates. Is now the time to buy Marvell Technology? Find out in our full research report. Revenue: $1.90 billion vs analyst estimates of $1.88 billion (63.3% year-on-year growth, 0.9% beat) Adjusted EPS: $0.62 vs analyst estimates of $0.61 (in line) Adjusted EBITDA: $496.9 million vs analyst estimates of $716.2 million (26.2% margin, 30.6% miss) Revenue Guidance for Q2 CY2025 is $2 billion at the midpoint, above analyst estimates of $1.98 billion Adjusted EPS guidance for Q2 CY2025 is $0.67 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 14.3%, up from -13.1% in the same quarter last year Free Cash Flow Margin: 11.3%, down from 20.1% in the same quarter last year Inventory Days Outstanding: 103, in line with the previous quarter Market Capitalization: $55.79 billion "Marvell delivered record revenue in the first quarter of $1.895 billion, a 63% year-over-year increase, and we are forecasting continued strong growth into the second quarter. This momentum is being fueled by strong AI demand in the data center end market, where our revenue is benefiting from the rapid scaling of our custom silicon programs and robust shipments of our electro-optics products," said Matt Murphy, Marvell's Chairman and CEO. Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Marvell Technology's sales grew at an exceptional 18.9% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Marvell Technology's annualized revenue growth of 5.9% over the last two years is below its five-year trend, but we still think the results were respectable. This quarter, Marvell Technology reported magnificent year-on-year revenue growth of 63.3%, and its $1.90 billion of revenue beat Wall Street's estimates by 0.9%. Beyond the beat, we believe the company is still in the early days of an upcycle as this was the third consecutive quarter of growth - a typical upcycle tends to last 8-10 quarters. Company management is currently guiding for a 57.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 31% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Marvell Technology's DIO came in at 103, which is 3 more days than its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are slightly above the long-term average. It was good to see Marvell Technology provide revenue guidance for next quarter that slightly beat analysts' expectations. We were also happy its EPS narrowly outperformed Wall Street's estimates. Looking ahead, Q2 revenue guidance came in ahead, but EPS guidance was just in line. Overall, this print was decent, but he market seemed to be hoping for more. The stock traded down 2% to $62.50 immediately after reporting. So do we think Marvell Technology is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Marvell Technology (NASDAQ:MRVL) Q1: Beats On Revenue, Quarterly Revenue Guidance Slightly Exceeds Expectations
Networking chips designer Marvell Technology (NASDAQ: MRVL) announced better-than-expected revenue in Q1 CY2025, with sales up 63.3% year on year to $1.90 billion. Guidance for next quarter's revenue was better than expected at $2 billion at the midpoint, 1% above analysts' estimates. Its non-GAAP profit of $0.62 per share was in line with analysts' consensus estimates. Is now the time to buy Marvell Technology? Find out in our full research report. Revenue: $1.90 billion vs analyst estimates of $1.88 billion (63.3% year-on-year growth, 0.9% beat) Adjusted EPS: $0.62 vs analyst estimates of $0.61 (in line) Adjusted EBITDA: $496.9 million vs analyst estimates of $716.2 million (26.2% margin, 30.6% miss) Revenue Guidance for Q2 CY2025 is $2 billion at the midpoint, above analyst estimates of $1.98 billion Adjusted EPS guidance for Q2 CY2025 is $0.67 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 14.3%, up from -13.1% in the same quarter last year Free Cash Flow Margin: 11.3%, down from 20.1% in the same quarter last year Inventory Days Outstanding: 103, in line with the previous quarter Market Capitalization: $55.79 billion "Marvell delivered record revenue in the first quarter of $1.895 billion, a 63% year-over-year increase, and we are forecasting continued strong growth into the second quarter. This momentum is being fueled by strong AI demand in the data center end market, where our revenue is benefiting from the rapid scaling of our custom silicon programs and robust shipments of our electro-optics products," said Matt Murphy, Marvell's Chairman and CEO. Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Marvell Technology's sales grew at an exceptional 18.9% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Marvell Technology's annualized revenue growth of 5.9% over the last two years is below its five-year trend, but we still think the results were respectable. This quarter, Marvell Technology reported magnificent year-on-year revenue growth of 63.3%, and its $1.90 billion of revenue beat Wall Street's estimates by 0.9%. Beyond the beat, we believe the company is still in the early days of an upcycle as this was the third consecutive quarter of growth - a typical upcycle tends to last 8-10 quarters. Company management is currently guiding for a 57.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 31% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Marvell Technology's DIO came in at 103, which is 3 more days than its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are slightly above the long-term average. It was good to see Marvell Technology provide revenue guidance for next quarter that slightly beat analysts' expectations. We were also happy its EPS narrowly outperformed Wall Street's estimates. Looking ahead, Q2 revenue guidance came in ahead, but EPS guidance was just in line. Overall, this print was decent, but he market seemed to be hoping for more. The stock traded down 2% to $62.50 immediately after reporting. So do we think Marvell Technology is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Microchip Technology, Marvell Technology, onsemi, Amplitude, and Genesco Shares Are Soaring, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Analog Semiconductors company Microchip Technology (NASDAQ:MCHP) jumped 5.3%. Is now the time to buy Microchip Technology? Access our full analysis report here, it's free. Semiconductor Manufacturing company Marvell Technology (NASDAQ:MRVL) jumped 7.8%. Is now the time to buy Marvell Technology? Access our full analysis report here, it's free. Analog Semiconductors company onsemi (NASDAQ:ON) jumped 6.1%. Is now the time to buy onsemi? Access our full analysis report here, it's free. Data Analytics company Amplitude (NASDAQ:AMPL) jumped 5.4%. Is now the time to buy Amplitude? Access our full analysis report here, it's free. Footwear company Genesco (NYSE:GCO) jumped 5.4%. Is now the time to buy Genesco? Access our full analysis report here, it's free. Marvell Technology's shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 6 months ago when the stock gained 22.6% on the news that the company reported strong third-quarter 2024 results that exceeded Wall Street's sales and earnings expectations. Sales grew by 19% sequentially amid unwavering AI demand, particularly in data center end markets. In addition, Marvell expected to significantly exceed the guide of $1.5B for AI revenue for the year and was optimistic about achieving its $2.5 billion target for FY26. Looking ahead, its full-year revenue and EPS guidance also exceeded consensus estimates. Zooming out, we think this was a good quarter with some key areas of upside. Additionally, CEO Matt Murphy addressed speculation about a potential move to Intel, firmly stating he was "All In" on Marvel. This dispelled any uncertainty that could stem from his potential exit, at least in the short term. Marvell Technology is down 42.7% since the beginning of the year, and at $65.03 per share, it is trading 48.4% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology's shares 5 years ago would now be looking at an investment worth $2,118. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
