Emotions are meant to stay out of the investing game, but who hasn’t been excited at the sight of an owned stock making some serious headway. Much more so, if the rest of the market is heading in the opposite direction.
As stocks once again bled across the board on Friday, Marvell Technology (MRVL) was surging to new peaks. The stock gained 18% in the day’s trading to clock an all-time high, as investors applauded an excellent quarterly display with all the semiconductor giant’s business segments enjoying strong growth.
In F3Q22, the company delivered revenue of $1.21 billion, amounting to a 61% year-over-year increase and coming in $60 million above the consensus estimate. Non-GAAP EPS of $0.43 also beat the analysts’ forecast - by $0.05.
For its fourth quarter, Marvell expects revenue of $1.32 billion, above analyst predictions for $1.21 billion. It expects earnings of 48 cents, also higher than the $0.42 estimate.
Where so many have stumbled recently, Marvel also outperformed; for Q4, the company anticipates revenue of $1.32 billion and adjusted earnings per share between $0.45 to $0.51. the Street had $1.21 billion and $0.42, respectively.
Further marking itself out from the crowd, the global supply chain bottlenecks which have affected so many appear to be less of a hindrance to Marvel, as noted by Susquehanna’s Christopher Rolland, who says the company has done an “excellent job with new procurements as they expect continued availability into 4Q and next year.”
“Perhaps most important of all,” the analyst went on to say, “Management now expects to grow revenue +30% year-over year (plus another $150 million from Innovium) in C2022, well beyond our prior expectation of just +20% YOY.“
Although Rolland anticipated “another beat and raise,” he admits he “hadn’t expected anything this good.” “Indeed,” the 5-star analyst summed up, “Everything is coming together for Marvell as custom hyperscale, 5G and automotive are expected to ramp significantly over the next few years, driving a source of highly profitable growth.”
All in all, Rolland sticks with a Positive (Buy) rating, while the performance merits a new price target; the figure rises from $82 to $100, suggesting shares have room for a further 20% uptick from current levels. (To watch Rolland’s track record, click here)
Rolland’s objective is just above the Street’s average target of $99.67. Looking at the consensus breakdown, barring 2 skeptics, all 22 other recent ratings are positive, culminating in a Strong Buy consensus rating. (See Marvell stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
