MRVL stock jumped 13% after Marvell Technology Group’s (NASDAQ:MRVL) fiscal fourth-quarter earnings topped Wall Street estimates, and it provided strong guidance for the current quarter.

Marvell’s Q4 Results Topped Analysts’ Estimates

The company reported adjusted earnings of $0.17 per share on the sales revenue of $718 million in the quarter ended February 1. These results topped analysts’ projected revenue of $713 million and adjusted earnings of $0.16 per share. In the same quarter the previous year, the company reported earnings per share of $0.25 on sales revenue of $744.8 million.

The chip maker’s CEO, Matt Murphy, indicated that the company delivered Q4 revenue exceeding the midpoint guidance range with string results from the storage and networking businesses. Storage revenue increased by 3% sequentially but dropped 6% from Q4 2019. Networking revenue grew by 14% from the third quarter and only dropped 3% from a year ago.

MRVL stock is up 12.88% to $25.50.

Marvell’s Q1 2021 Guidance

Marvell now expects adjusted earnings of between $0.11 and $0.17 per share in the first quarter 0f 2021 and revenue of around $680. The projection is 5% ahead of Wall Street’s average estimates of $674.8 million, and using a midpoint of adjusted earnings of $0.13, the prediction is ahead of analysts’ estimates by a penny.

The first quarter guidance includes a 5% reduction in connection to the outbreak of the coronavirus, which has been affecting sales. It also reflects the impact of the US’s export restrictions on particular Chinese customers. Marvell indicated that because of the ongoing uncertainty in relation to the coronavirus outbreak, they have temporarily widened the company’s revenue guidance range.

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Murphy indicated that despite the effects of the outbreak, the company has continued to gain traction in its customers in the wireless infrastructure market that is currently booming. The company expanded its relationship with Nokia (NYSE:NOK) in the development of various generations of 5G silicon solutions. Similarly, Marvell has also announced an extension of its partnership with Samsung (OTC:SSNLF)regarding the radio access network. Marvell’s Q4 2020 results also reflect results for the acquisition of Avera Semiconductor.

MRVL stock has soared over 25% in the past week.

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