Marvell Technology Stock Forecast: MRVL gains 4.8% in premarket after earnings beat

• Marvell Technology reported $0.52 in adjusted EPS on $1.45B in revenue.
• MRVL stock is down more than 36% year to date.
• Marvell beat consensus EPS by 1 cent and revenue by $20M.

Marvell Technology (MRVL) stock has advanced nearly 5% in Friday's premarket after posting Q1 results late Thursday that narrowly beat expectations but offered an optimistic outlook that impressed Wall Street. MRVL shares are trading up 4.8% three hours before the market opens at $59.70. 

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Marvell Technology Stock Earnings: MRVL steadily expands top line

Marvell Technology posted adjusted earnings per share (EPS) of $0.52 on revenue of $1.45 billion. Wall Street had been expecting $0.51 a share on $1.43 billion in revenue. The top line grew by 74% YoY, demonstrating to shareholders that the current growth trajectory is continuing. Marvell management said that adjusted gross margin was a healthy 65.5% and that Q2 would bring about a similar gross margin between 65% and 65.5%. The second quarter outlook as a whole was positive as the semiconductor firm said to expect revenue of $1.515 billion and adjusted EPS of $0.56.

"Due to supply chain-related impacts, results from our enterprise networking market were below our guidance," said CEO Matt Murphy. "However, growth was still very strong with revenue growing a robust 64% year-over-year and 9% sequentially." Murphy added, "In our datacenter end market, revenue for the first quarter was $640.5 million. Leading our guidance, having grown 12% sequentially and 131% year-over-year."

The Marvell earnings beat is none too surprising. Earlier this week Susquehanna analyst Christopher Rolland reiterated the company's "Positive" rating, saying that Susquehanna had a strong amount of faith in Marvell's management team.

Marvell Technology Stock Forecast: MRVL achieves new range high

MRVL stock has already confirmed a new range high on the 4-hour chart. Below you can see it has already surpassed recent resistance at $59. Now headed for $60, the next target is $63, the recent range high.

There is a large area surrounding $63 that may make this difficult. A supply zone ranges from $61.75 to $65.10 that ranged back to early April. Only if Marvell stock can overcome this barrier will it have the opportunity to make a longer-term run for the $76.52 high from March 22. The good news for bulls is that the 9-day moving average has crossed over above the 20-day moving average. That is the first signal that a bull trend might be forming. Until then, support is at $52.

MRVL 4-hour chart