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.
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.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.