Marvell Technology (MRVL) Stock: Why The Price Is Surging Today

By Amit Chowdhry ● Dec 3, 2021
  • The stock price of Marvell Technology Inc (NASDAQ: MRVL) increased by over 19% pre-market today. This is why it happened.

The stock price of Marvell Technology Inc (NASDAQ: MRVL) – a leader in infrastructure semiconductor solutions – increased by over 19% pre-market today. Investors are responding positively to the results Marvell Technology’s third quarter of the fiscal year 2022.

Marvell had completed the acquisition of Innovium on October 5, 2021, approximately 25 days before the end of the third quarter of the fiscal year 2022. And Marvell’s results for the third quarter of fiscal 2022 include the results of Innovium from the acquisition date while prior periods presented do not.

These are the highlights from the quarter:

— Net revenue for the third quarter of fiscal 2022 was $1.211 billion, which exceeded the midpoint of the company’s guidance provided on August 26, 2021. 

— GAAP net loss for the third quarter of fiscal 2022 was $(63) million, or $(0.08) per diluted share. 

— Non-GAAP net income for the third quarter of fiscal 2022 was $364 million, or $0.43 per diluted share. 

— Cash flow from operations for the third quarter was $265 million.

Q4 of Fiscal 2022 Financial Outlook

— Net revenue is expected to be $1.320 billion +/- 3%.

— GAAP gross margin is expected to be 47.9% to 49.8%.

— Non-GAAP gross margin is expected to be approximately 65%.

— GAAP operating expenses are expected to be $630 million to $640 million.

— Non-GAAP operating expenses are expected to be $390 million to $395 million.

— Basic weighted average shares outstanding are expected to be 844 million.

— Diluted weighted average shares outstanding are expected to be 861 million.

— GAAP diluted loss per share is expected to be $(0.03) +/- $0.04 per share.

— Non-GAAP diluted income per share is expected to be $0.48 +/- $0.03 per share.

KEY QUOTE:

“Marvell delivered record revenue of $1.211 billion in the fiscal third quarter, growing 13 percent sequentially and 61 percent year over year, exceeding the high end of our guidance. Revenue grew substantially in each of our five end markets, led by data center, our largest contributor at 41 percent of total revenue, which grew 15 percent sequentially and 109 percent year over year. For the fourth quarter, we are expecting sequential revenue growth of 9 percent at the midpoint of guidance, led by 5G, which is projected to increase by 30 percent sequentially and data center which is forecasted to continue to grow in the double digits on a percentage basis.”

— Matt Murphy, Marvell’s President and CEO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.