Marvell (NASDAQ:MRVL) Third Quarter Results Hurt by Lower Demand – MRVL, BRCM, TSM, SWKS, WFR

Duncan Oleinic - November 16, 2012

Marvell Technology Group Ltd. (NASDAQ:MRVL)’s shares surged 3.22% on Thursday that its Q3 profit plunged on lower demand for PCs, but the chipmaker’s adjusted earnings met market anticipations.

The Santa Clara, Calif.-based firm made $68.8M, or 12 cents a share, for the quarter that ended Oct. 27. That is drop from $195.1 million, or 32 cents a share, a year before. Adjusting for acquisition costs, restructuring costs and other items, it generated 20 cents a share evaluated with 24 cents a share previous year.

Revenue plunged 18% to $780.9M.

Analysts polled by FactSet anticipated 20 cents a share on revenue of $773.9M.

Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) traded at $7.41 by increasing +0.70% with price volatility of 3.64% for a week and 3.39% for a month plus price volatility’s Average True Range for 14 days was 0.29 and its beta stands at 1.18 times.

Stocks after opening at $7.43 hit high price of $7.61 and on last session stock held volume of 12.00 million shares which was unexpectedly higher than its average volume of 11.92 million shares.

Short-term as well long term investors always focus on the liquidity of the stocks so for that concern, liquidity measure in recent quarter results of the company was recorded 4.68 as current ratio. The Company had total cash at hand $2.13 billion and a book value per share as $8.61 in the most recent quarter.

While investors who viewing MRVL against other stocks with the reference of profit margin that are Broadcom Corporation (NASDAQ:BRCM) small declined -1.24%, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) gain +0.85%, Skyworks Solutions Inc (NASDAQ:SWKS) slid -2.32% and MEMC Electronic Materials, Inc. (NYSE:WFR) edged up +1.75%.

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Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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