Mapping Marvell Technology’s Rise Last Month
Marvell rises 15% in August
Semiconductor (SMH) stock Marvell Technology (MRVL) rose 15.1% in August 2017 and closed the month at $17.91. Marvell is now trading 49% above its 52-week low of $12.03 and marginally below its 52-week high of $18.18.
Marvell’s stock price rose ~10% on August 25, 2017, after the firm announced its 2Q17 results. It reported revenues of $605 million, which represents a rise of 1% YoY (year-over-year) in fiscal 2Q17. Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) rose 67% YoY to $0.3 in 2Q17.
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Analysts expected Marvell to post revenues of $601 million and EPS of $0.28 for the quarter (ended July 2017). Its free cash flow rose 134% YoY to $89 million in 2Q17, up from $38 million in 2Q16.
Marvell’s core business revenue rose 6% in 2Q17
Marvell’s Storage Controller revenues rose 13% YoY and drove the company’s core business revenue 6% higher in 2Q17. Similar to storage firms like Western Digital (WDC) and Seagate (STX), Marvell has also been impacted by a slowdown in the traditional HDD (hard-disk drive) market. The decline in HDD revenues has been offset by growth in SSD (solid-state drive). Marvell’s SSD revenue now accounts for ~25% of the firm’s total storage revenues.
Notably, Marvell is looking to improve its revenue growth by focusing on increasing sales of its SSD product segment.