Marvell Technology (NASDAQ: MRVL) stock soared in Friday’s pre-market trading, reaching gains upwards of 20% after the technology and semiconductor company released impressive Q3 results postmarket Thursday. The high-end chip maker is progressing in all the right areas, pleasing investors as results surpassed the Wall Street consensus.
Marvell reported a third-quarter loss of $62.5M compared to $22.9M the previous year. Adjusted earnings, excluding stock-based compensation expenses and other items, came out at $0.43 per share, a sizeable increase from $0.25 per share in the previous year. Similarly, revenue rose to $1.21B from last year’s $750.1M in Q3.
Spurring investors this morning, the Q3 earnings beat analyst expectations by slightly more than a pinch – with $0.38 being the general EPS consensus and revenue of $1.15B. Off the back of a promising quarter, Marvell also posted similar growth expectations for Q4, upping previous estimates – forecasting adjusted earnings of $0.45 to $0.51 per share compared to a previous forecast of $0.42, with the revenue of between $1.28B and $1.36B factoring in the company’s recent acquisition of Innovium Inc.
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Semiconductors have hit a chord with investors as of late, as clean energy continues to dominate the narrative and the forward-thinking market makes room for cutting-edge companies. Tech stocks balloon as our economies shift, hence when companies like Marvell post promising earnings, it’s reassuring for future-thinking bulls. MRVL stock is currently trading with a premarket gain of 21%, with price sitting around the $86.50 level.
Should you invest in Marvell Technology shares?
Tech stocks offer some of the best growth potential, but time and time again, traders and investors ask us “what are the best tech stocks to buy?” You’ve probably seen shares of companies such as Amazon and Netflix achieve monumental rises in the past few years, but there are still several tech stocks with room for significant gains. Here is our analysts view on the best tech stocks to buy right now