Marvell released guidance for next quarter with revenues in a range of $840-890 million, representing a sequential 6-12% increase. They also expect their mobile and wireless segment to grow between 5-10% during the next quarter, due in large part to an increase in TD smartphone revenue. Non-GAAP EPS estimates for next quarter are 28 cents per share. With the Chinese mobile market continuing to grow and China Mobile continuing their investments in the TD-SCDMA and TD-LTE networks, Marvell stands to benefit from this with a strong product line in both networks. Currently higher material costs and European exposure continue to hinder the stock lower despite a good earnings release and positive outlook.
- Ryan Ranado