What's Going On With Marvell Technology Shares Friday?

Author: Dylan Berman | August 30, 2024 12:21pm

Marvell Technology, Inc. (NASDAQ:MRVL) shares are moving higher on Friday after the company reported better-than-expected MRVL) with a Overweight and maintains $100 price target.">second quarter earnings.

The Details: The company reported earnings after the market closed on Thursday. Marvell reported EPS of 30 cents, inline with analyst estimates, and sales of $1.27 billion, beating estimates of $1.25 billion.

“Marvell’s second quarter revenue grew 10% sequentially, above the mid-point of guidance driven by strong demand from AI. We saw strong growth from our electro-optics products and our custom AI programs began to ramp,” said Matt Murphy, Marvell’s Chairman and CEO. 

Third Quarter Guidance: Marvell sees adjusted EPS of 40 cents, plus or minus $0.05. Also, Marvell sees revenue at $1.45 billion, plus or minus 5%.

Murphy also stated, “Next quarter, we expect our combined enterprise networking and carrier end markets to return to growth, while our data center end market growth accelerates. As a result, for the third quarter of fiscal 2025, we expect all our end markets to grow sequentially, with consolidated revenue forecasted to grow 14% sequentially at the mid-point, accompanied by a significant increase in operating leverage.”

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Morgan Stanley analyst Joseph Moore maintained an Equal Weight rating on Marvell and lowered the price target from $77 to $82.
• Roth MKM analyst Suji Desilva maintained a Buy rating on Marvell and maintained a $95 price target.
• Evercore ISI Group analyst Mark Lipacis maintained a Outperform rating on Marvell and raised the price target from $91 to $98.
• Stifel analyst Tore Svanberg reiterated a Buy rating on Marvell and raised the price target from $90 to $95.
• Goldman Sachs analyst Toshiya Hari maintained a Buy rating on Marvell and raised the price target from $77 to $87.
• Piper Sandler analyst Harsh Kumar reiterated an Overweight rating on Marvell and maintained a $100 price target.

Related Link: Intel Weighs Major Business Split, Factory Delays Amid Strategic Review: Report

MRVL Price Action: Marvell Technology stock is trading 9.48% higher at $76.46 at the time of writing per data from Benzinga Pro.

Image: Courtesy of Marvell

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