Oppenheimer Maintains Perform Rating On Marvell Technology

According to Oppenheimer, Marvell Technology MRVL reported light F1Q (April) EPS/revs of $0.29/$802M (-11% Q/Q) vs. the Street's $0.30/$826M, primarily due to weaker than expected Mobile & Wireless (-30% Q/Q). Oppenheimer said that strong revenue outlook of $890M (+11% Q/Q, midpoint), however, topped consensus' $875M forecast (+6% Q/Q), driven by a snapback in Mobile & Wireless (20%-plus Q/Q), and modest growth in Storage and Networking. “We anticipate the yo-yo performance of Mobile & Wireless to do little to quell bearish views, but with low expectations heading into the call (shares off 22% YTD vs. the SOX +4%), we look for MRVL to open higher, given a positive bias to consensus ests. Share count reduction accounts for nearly all of the EPS upside. Marvell Technology closed yesterday at $14.18.”