{"id":18624,"date":"2022-03-04T00:27:16","date_gmt":"2022-03-04T00:27:16","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/03\/04\/broadcom-and-marvell-deliver-earnings-and-revenue-beats-on-strong-chip-demand\/"},"modified":"2022-03-04T00:27:16","modified_gmt":"2022-03-04T00:27:16","slug":"broadcom-and-marvell-deliver-earnings-and-revenue-beats-on-strong-chip-demand","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/03\/04\/broadcom-and-marvell-deliver-earnings-and-revenue-beats-on-strong-chip-demand\/","title":{"rendered":"Broadcom and Marvell deliver earnings and revenue beats on strong chip demand"},"content":{"rendered":"

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Computer chipmakers Broadcom Inc.<\/a> and Marvel Technology Inc.<\/a> both reported quarterly financial results today, beating expectations and offering strong guidance to send their stocks higher in after-hours trading.<\/p>\n

The biggest gain was made by Broadcom, which saw its stock rise 4% after posting<\/a> net income for the first quarter of $2.47 billion, reversing a slight dip in regular trading. The company\u2019s earnings before certain costs such as stock compensation came to $8.39 per share, with revenue rising 16%, to $7.71 billion.<\/p>\n

The chipmaking business is clearly still a very profitable one, as Wall Street was expecting lower earnings of $8.13 per share on revenue of $7.61 billion.<\/p>\n

Broadcom President and Chief Executive Hock Tan (pictured) said the company\u2019s results were driven by strong demand from enterprise customers and ongoing investments in chip technologies by hyperscale and service providers.<\/p>\n

No doubt Broadcom is also helped by the fact that it has fingers in many pies. Although its main business involves making wireless chips for smartphones, its silicon is also used in broadband communications, networking, storage and industrial applications. In addition, it has a rising infrastructure software business for mainframes, data centers and cybersecurity.<\/p>\n

Hence, Broadcom operates two main business segments. The biggest, semiconductor solutions, accounted for just over three-quarters of its revenue with sales of $5.87 billion in the quarter, up 20% from a year ago. Infrastructure software did $1.83 billion in sales, up 5%.<\/p>\n

Looking to the next quarter, Broadcom said it expects revenue of about $7.9 billion, well ahead of Wall Street\u2019s consensus estimate of $7.42 billion in sales.\u00a0\u201cOur second-quarter outlook projects year-over-year growth to accelerate,\u201d added Tan.<\/p>\n

Marvelous growth<\/strong><\/h3>\n

\"\"Marvell delivered a similarly reassuring performance, reporting<\/a> fourth-quarter income of $6.1 million, with its earnings before certain costs coming to 50 cents per share. Revenue for the period jumped 68%, to $1.34 billion.<\/p>\n

That was better than expected too, with analysts looking for earnings of 48 cents per share on sales of $1.32 billion. Marvell\u2019s stock ticked up just over 2% in the after-hours trading session, having slipped by more than 3% during a day in which the tech-heavy Nasdaq fell 1.6%.<\/p>\n

The company also reported its full fiscal 2022 results, with revenue rising almost 40% over fiscal 2021, to $4.46 billion.<\/p>\n

Marvell designs a variety of data storage and networking chips that are primarily sold to cloud computing providers and companies in the automotive and communications industries. It\u2019s a much smaller player in the business than Broadcom, but it has a strong presence and is growing fast in the primary segments in which it operates.<\/p>\n

Marvell Chief Executive Matt Murphy (pictured, above) acknowledged the company\u2019s rapid growth in his prepared comments.<\/p>\n

\u201cRevenue grew in all five of our end markets in the fourth quarter, with strong contributions from cloud, 5G and auto, which together represented 40% of total revenue,\u201d he said. \u201cIn addition, our enterprise networking end market has become another growth pillar, with revenue increasing 64% year-over-year, driven by our content gains and share increases, as enterprises continue to transform their infrastructure to address the needs of a more flexible, hybrid workforce.\u201d<\/p>\n

The star performer was in fact Marvell\u2019s data center business, which delivered $574 million in revenue, up 113% from a year ago. Carrier infrastructure generated $241 million, up 45%, while enterprise networking sales came to $263 million. Marvell\u2019s consumer businesses added $185 million in sales, up 11%, while the smallest automotive segment was also the fastest-growing, with sales up 139%, to $79 million.<\/p>\n

For the next quarter, Marvell offered guidance of 51 cents per share on revenue of $1.425 billion. Wall Street had earlier called for earnings of 49 cents per share on sales of $1.38 billion.<\/p>\n

Photos: Wikimedia Commons<\/a> and Marvell<\/h5>\n
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