Why did Marvell stock jump up today?
- Marvell Technology (NASDAQ:MRVL) shares surged on Friday, to finish up nearly 18% to $83.59 after the semiconductor company posted better-than-expected third-quarter earnings.
- Marvell (MRVL) said it earned an adjusted 43 cents a share on $1.211 billion in revenue. Wall Street analysts surveyed expected the company to earn 38 cents a share on $1.15 billion in revenue.
- For the fourth-quarter, Marvell (MRVL) said it expects revenue to be $1.32 billion, plus or minus 3%, with adjusted earnings to be between 45 and 51 cents per share. Non-GAAP gross margins are expected to be approximately 65%.
- Marvell (MRVL) had its price target at UBS boosted to $95 from $87 after the quarter. Several other investment firms raised price targets, while Goldman Sachs and Cowen upgraded Marvell (MRVL) shares.
- On the earnings call, Marvell (MRVL) said that supply was better than expected in the third-quarter and improvements are expected this quarter and in 2022. The company added that data center revenue is expected to more than double in the next quarter.
- Marvell (MRVL) CEO Matt Murphy also highlighted the potential for the metaverse, noting it has "the potential to be a killer app for 5G," calling it an area of strength for Marvell. Murphy added that next-generation data infrastructure needs richer virtual applications and experiences, positioning Marvell (MRVL) well.
- On Wednesday, Susquehanna Bancshares raised its price target to $82 on Marvell (MRVL) shares ahead of earnings, as the investment firm expects the company to see continued strength in Enterprise, Cloud, Gaming, and 5G.