Marvell Technology Group Ltd. (MRVL) Reports Disappointing Preliminary Q3 Earnings

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Marvell Technology Group Ltd. (NASDAQ:MRVL) today reported their preliminary third quarter earnings, and the numbers have come in south of what analysts had been predicting. While analysts had been expecting an EPS of around $0.13, the company reported just $0.05 per share. Additionally, Marvell Technology Group Ltd. (NASDAQ:MRVL) reported 674 million in revenue for the quarter, which was also short of the $711.33 million that analysts predicted. Below you will find some of the key figures in this preliminary report:

Non-GAAP Net Income: Q3 FY 2016 – $28 Million
Non-GAAP Diluted EPS: Q3 FY 2016- $0.05
GAAP Net Loss: Q3 FY 2016 – ($62) Million
GAAP Loss Per Share: Q3 FY 2016 – ($0.12)
Free Cash Flow for the Quarter FY – $54 Million
Restructuring and other related charges of $46 Million
Cash and Short Term Investments: $2.3 Billion

The stock closed at $9.24 during the last trading session. It is down 34.79% since May 4, 2015 and is downtrending. It has underperformed the S&P500 by 34.59%.

From a total of 22 analysts covering Marvell Technology Group (NASDAQ:MRVL) stock, 4 rate it a “Buy”, 4 a “Sell”, and 14 a “Hold”. This means that 18% of the ratings are positive. The highest target price is $18 while the lowest target price is $6. The mean of all analyst targets is $10.09 which is 9.20% above today’s ($9.24) stock price. Marvell Technology Group was the topic of 40 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Citigroup downgraded shares on October 28 to a “Sell” rating. Nomura downgraded shares to a”Neutral” rating and a $12 target share price in their report from an October 12. UBS downgraded MRVL stock in a recent report from October 27 to a “Sell” rating. Morgan Stanley maintained the rating on September 25. Morgan Stanley has a “Equal-Weight” rating and a $10.50 price target on shares. Finally, B. Riley & Co downgraded the stock to a “Sell” rating in a report they issued on an October 27.

The institutional sentiment decreased to 0.64 in Q2 2015. It’s down 0.34, from 0.98 in 2015Q1. The ratio dived, as 56 funds sold all their Marvell Technology Group Ltd. shares they owned while 121 reduced their positions. 30 funds bought stakes while 83 increased their total positions. Institutions now own 343.02 million shares which is 0.80% more than the previous share count of 340.30 million in 2015Q1.

Bow Street Llc holds 5.05% of its total portfolio in Marvell Technology Group Ltd., equating to 792,878 shares. Shannon River Fund Management Llc owns 2.95 million shares representing 3.82% of their total US portfolio. Moreover, Hoertkorn Richard Charles has 2.42% of their total portfolio invested in the company, equating to 246,243 shares. The Michigan-based Seizert Capital Partners Llc has a total of 2.17% of their portfolio invested in the stock. Connective Capital Management Llc, a California-based fund reported 159,435 shares owned.

Marvell Technology Group Ltd. is a fabless semiconductor well-known provider of application-specific standard products. The company has a market cap of $4.78 billion. The Firm develops System-on-a-Chip (SoC) devices. It currently has negative earnings. The Company’s product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers (PHY), mobile handsets, connectivity, Internet-of-Things (IoT) devices and other consumer electronics.

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