Marvell Technology Group Ltd (NASDAQ: MRVL) reported a revenue of $605 million during the second quarter of 2018 surpassing the midpoint of their guidance. As a result, the stock rallied 9% this morning (as of 11:26AM EDT on August 25th, 2017; Source: Google finance). The group’s GAAP net income from continuing operations reached $135 million, or $0.26 per share during the second quarter of 2018 while Non-GAAP net income reached $153 million, or $0.30 per diluted share. Cash flow from operations is $101 million as of quarter of 2018.
For the third Quarter of 2018, the group expects a revenue in the range of $595 million to $625 million while GAAP and non-GAAP gross margins are forecasted to be over 61% to 62%. GAAP operating expenses are forecasted to be $230 million to $240 million while Non-GAAP operating expenses are forecasted to be $205 million to $210 million. GAAP diluted EPS is forecasted to be in the range of $0.25 to $0.31 per share while Non-GAAP diluted EPS would be in the range of $0.30 to $0.34 per share.
The group’s 88SS1074 SATA SSD controller has exceeded 50 million unit total shipments in just 18 months, leading to a year over year growth of 385% in this year to date. This shows the group customer relations with leading SSD manufacturers, server and storage original equipment makers (OEMs) and cloud data center operators. As per Gartner research, PC-Grade SSD Units market is forecasted to witness a compound annual growth rate of >20% from 2016-2021. Marvell is well positioned to leverage this trend given its 20 years’ experience in storage hard disk drive (HDD) controller technology, complex system-level system-on-chip (SoC) design, advanced error correction algorithms, and low-power architectures.
As per thirteen analysts, Marvell Technology has an 18.3% upside with an average analysts target price of $20.46, as per tipranks.com