Marvell stock soars as strong AI demand yields earnings beat, strong guidance

December 04, 2024 08:57 AM AEDT | By Investing

Google News:

Marvell stock soars as strong AI demand yields earnings beat, strong guidance

Recent News

ShipStation® Launches Advanced Features Enabling Businesses to Optimiz...

Logitech Hosts Its First “Women in Coding” Panel: Empowering Women in...

Tarifflation Forces 39% of Global Consumers to Rethink Summer Travel—a...

Prime Day Shocker: Ampace Andes 1500 Drops from $1399 to $499

Marvell Technology Inc (NASDAQ:MRVL) reported third-quarter fiscal 2025 earnings that exceeded analyst expectations, driving its stock almost 8% higher in after-hours trading. The company also provided an optimistic outlook for the fourth quarter, citing robust demand for its AI-related products.

The data infrastructure semiconductor solutions provider posted adjusted earnings per share of $0.43, surpassing the analyst consensus of $0.41. Revenue for the quarter reached $1.52 billion, beating estimates of $1.45 billion and marking a 7% increase YoY.

Marvell's fourth-quarter guidance also impressed investors. The company forecasts revenue of $1.8 billion (+/- 5%), significantly above the $1.646 billion consensus. Adjusted EPS is expected to be $0.59 (+/- $0.05), topping analyst projections of $0.52.

Matt Murphy, Marvell's Chairman and CEO, attributed the strong performance to AI-driven demand. "Marvell's fiscal third quarter 2025 revenue grew 19% sequentially, well above the mid-point of our guidance, driven by strong demand from AI," he stated.

The company anticipates continued momentum, projecting 26% YoY revenue growth for the fourth quarter. Murphy added, "We look forward to a strong finish to this fiscal year and expect substantial momentum to continue in fiscal 2026."

Marvell's third-quarter GAAP gross margin was 23.0%, while non-GAAP gross margin reached 60.5%.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.