Marvell Technology Q3 revenue edges past estimates on strong demand for data center products

Reuters
2 hours ago
Marvell Technology Q3 revenue edges past estimates on strong demand for data center products

Overview

  • Marvell Q3 revenue rises 37% yr/yr to $2.075 bln, edging past analyst expectations

  • Adjusted EPS for Q3 beats analyst expectations

  • Company completes sale of automotive ethernet business, gains $1.8 bln pre-tax

Outlook

  • Marvell expects Q4 revenue of $2.200 bln +/- 5%

  • Company forecasts full-year revenue growth to exceed 40%

  • Marvell anticipates higher data center revenue growth next year

Result Drivers

  • DATA CENTER DEMAND - Record revenue driven by strong demand for data center products, per CEO Matt Murphy

  • AUTOMOTIVE SALE IMPACT - Sale of automotive ethernet business resulted in $1.8 bln pre-tax gain

  • AI INFRASTRUCTURE ENHANCEMENT - Acquisition of Celestial AI to strengthen AI datacenter infrastructure

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$2.08 bln

$2.07 bln (30 Analysts)

Q3 Adjusted EPS

Beat

$0.76

$0.73 (30 Analysts)

Q3 EPS

$2.20

Q3 Net Income

$1.90 bln

Q3 Gross Margin

51.60%

* Applies to a deviation of less than 1%; not applicable for per-share numbers.Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy"

  • Wall Street's median 12-month price target for Marvell Technology Inc is $90.00, about 1.2% below its December 1 closing price of $91.10

  • The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw3n9hKka

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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