Technology stock

MRVL gains 4.8% in pre-market after beating profits

  • Marvell Technology reported adjusted EPS of $0.52 on revenue of $1.45 billion.
  • MRVL’s stock is down more than 36% year-to-date.
  • Marvell beat consensus EPS by 1 cent and revenue by $20 million.

Marvell Technology (MRVL) stock was up nearly 5% in premarket Friday after reporting first-quarter results on Thursday evening which beat expectations but offered an optimistic outlook that impressed Wall Street. Shares of MRVL are trading up 4.8% three hours before market open at $59.70.

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Profits from Marvell Technology shares: MRVL steadily increases its turnover

Marvell Technology posted adjusted earnings per share (EPS) of $0.52 on revenue of $1.45 billion. Wall Street expected $0.51 a share on $1.43 billion in revenue. Revenue increased 74% year-on-year, demonstrating to shareholders that the current growth trajectory continues. Marvell Management said the adjusted gross margin was 65.5% and the second quarter would result in a similar gross margin between 65% and 65.5%. The outlook for the second quarter as a whole was positive, with the semiconductor company saying it expected revenue of $1.515 billion and adjusted EPS of $0.56.

“Due to supply chain impacts, our enterprise networking market results were lower than expected,” said CEO Matt Murphy. “However, growth remained very strong with revenue growing strongly 64% year-over-year and 9% sequentially.” Murphy added, “In our data center end market, first quarter revenue was $640.5 million. Topped our forecast, rising 12% sequentially and 131% year-on-year.

The Marvell Earnings beat is not too surprising. Earlier this week Christopher Rolland, analyst at Susquehanna reiterated the company’s “positive” rating, saying Susquehanna has great confidence in Marvell’s management team.

Marvell Technology Stock Forecast: MRVL hits new high range

LMRV inventory has already confirmed a new high range on the 4-hour chart. Below you can see that it has already broken above the recent resistance at $59. Now headed towards $60, the next target is $63, the recent high in the range.

There is a large area around $63 which can make this difficult. A supply zone ranges from $61.75 to $65.10 which dated back to early April. Only if Marvell stock can overcome this hurdle if it has the opportunity to make a longer-term run to reach the high of $76.52 from March 22. The good news for bulls is that the 9-day moving average has moved above the 20-day moving average. This is the first signal that an uptrend might be forming. Until then, support is at $52.

4 hour MRVL chart

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