Marvell Q3 Adj Profit Meets View, Revenues Miss, Provides Weak Outlook

(RTTNews) - Chipmaker Marvell Technology Group Ltd. (MRVL) reported Thursday a profit for the third quarter that increased from last year, despite a revenue decline, reflecting improved margins. Adjusted earnings per share matched analysts' expectations, while quarterly revenues missed their estimates. The company also provided earnings and revenue guidance for the fourth quarter, just below Street view.

The Hamilton, Bermuda-based company reported net income of $115 million or $0.22 per share for the third quarter, higher than $103.16 million or $0.21 per share for the prior-year quarter.

Excluding items, adjusted net income for the quarter was $155 million or $0.29 per share, compared to $163.37 million or $0.32 per share in the year-ago quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter edged down to $930.14 million from $931.23 million in the same quarter last year, and missed twenty-six Wall Street analysts' consensus estimate of $976.14 million.

Gross margin for the quarter improved 70 basis points to 51.0 percent from last year's 50.3 percent. Total operating expenses for the quarter declined to $359.62 million from $371.02 million in the year-ago quarter.

Further, Marvell said it paid a quarterly dividend of $0.06 per share on October 2, 2014 to all shareholders of record as of September 11, 2014.

Marvell said it intends to pay its next quarterly dividend of $0.06 per share on December 29, 2014 to all shareholders of record as of December 11, 2014.

Looking ahead to the fourth quarter, the company forecasts adjusted earnings per share of $0.24 +/- $0.02, on projected revenues between $880 million and $900 million. Analysts currently expects the company to report earnings of $0.26 per share on quarterly revenues of $930.89 million.

MRVL closed Thursday's regular trading session at $13.30, down $0.07 or 0.52% on a volume of 5.23 million shares.