Semiconductor exchange traded funds got a boost from Marvell Technology (NasdaqGS: MRVL) after the company reported first-quarter results. The stock was up 9% on Friday.
Citadel Securities said Marvell reported quarterly sales of $802 million, down 11% quarter over quarter, and short of its estimate.
“As in the prior quarter, the sales shortfall was largely attributable to a steeper than anticipated ecline in the mobile and wireless business, with the total segment down 30% quarter over quarter vesus guidance of down 20%,” Citadel said in a note Friday. “Also similar to the prior quarter, weakness at a single large customer (we assume RIM) was singled out as the primary factor.”
The analysts said despite a near-term outlook for solid growth “albeit off a depressed base, we remain cautious about the longer-term outlook.”
Marvell comprises 3.4% of the $214 million iShares PHLX SOX Semiconductor (NasdaqGM: SOXX). The sector ETF gained about 1% on Thursday amid Freescale Semiconductor’s (NYSE: FSL) initial public offering. [Semiconductor ETFs Higher on Freescale IPO]
iShares PHLX SOX Semiconductor
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