Marvell Technology Group (MRVL) shares jumped more than 9% in premarket trading after the company gave a positive revenue outlook when it reported earnings late Thursday and announced a $500 million share buyback plan. Marvell makes chips and parts for computer hard drives, networking equipment and mobile phones.
Marvell's earnings nearly quadrupled in the quarter. Net income for fiscal second quarter 2011 ended July 31 rose to $219.8 million, or 33 cents a share, from $58.5 million, or 9 cents a share, a year earlier. Adjusted earnings were 40 cents per share, which matched analyst estimates.
Revenue rose 40% to $896.5 million from $640.6 million last year, a bit shy of the revenue of $906.6 million that analysts expected. Marvell reported a 140% growth in its mobile and wireless end market compared to the same quarter a year ago, and 30% growth in the networking end market.
The chipmaker, which said its inventory correction is largely behind it, projected third-quarter earnings of 41 cents to 44 cents on revenue of $930 million to $970 million. Analysts are looking for 40 cents a share on $945.7 million in revenue, according to Thomson Reuters.
Managing your Portfolio
Keeping your portfolio and financial life fit!View Course »