- 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.
Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries
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
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bulls stay in the game and eye higher before correction
AUD/USD advanced mid-week and extended the gains on Thursday´s New York session as the US Dollar tumbled. AUD was helped by better China factory data and due to the hopes that the Federal Reserve will pause the rate hike.
EUR/USD bulls need validation from 100-day EMA and US NFP
EUR/USD seesaws around 1.0760 during Friday’s sluggish Asian session, after rising the most in nearly two months the previous day. In doing so, the Euro pair portrays the pre-NFP consolidation amid a cautious mood and a light calendar, as well as mixed technical catalysts.
Gold eyes a sustained break above $1,980 amid chaos over Fed’s rate guidance
Gold price has sensed marginal selling pressure after failing to sustain above the crucial resistance of $1,980.00 in the Asian session. The precious metal showed a solid upside on Thursday, capitalizing efficiently on a sell-off in the US Dollar Index (DXY).
Token unlocks trouble the market despite the events’ role in project stability
Token unlocks help maneuver volatility in the market as the releases bring opportunities for increased liquidity and, therefore, potential gains. Nevertheless, akin to the laws of demand and supply, the events lead to a fall in crypto prices for some assets.
The June rate hike needle has been moved precipitously lower
Even though equity market investors had, for the most part, looked through the debt ceiling drama, US stocks still rallied in relief rally fashion as investors revelled after perhaps one of the most significant economic downside risks of the year had been skirted.