On Friday, Marvell Technology Inc. (NASDAQ:MRVL) shares advanced by more than 17% after reporting its most recent quarterly results. The company released its FQ3 revenue and earnings Thursday after markets closed, beating the consensus for analyst expectations. Marvell also issued its FQ4 revenue and earnings guidance above expectations.
The company posted FQ3 non-GAAP earnings per share of $0.43, beating the average analyst estimate of $0.38. In addition, Marvell’s GAAP EPS of -$0.08 outperformed the expectation of -$0.13, while revenue for the quarter grew by more than 61% from the same quarter a year ago to $1.21 billion, exceeding expectations by $60 million.
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The company now expects to post FQ4 revenue of about $1.32 billion, surpassing the Street forecast of $1.21 billion. In addition, its non-GAAP EPS forecast of about $0.48 is higher than the average analyst estimate of $0.42.
Should you bet on Marvell’s growth?
From an investment perspective, Marvell Technology shares trade at a reasonable forward P/E ratio of 43.31, making it an interesting option for value investors.
In addition, analysts forecast its earnings to grow at an average annual rate of 38.20% over the next five years. Therefore, the stock could also be a compelling option for long-term growth investors.
Technically, Marvell shares seem to have recently spiked to complete an upward breakout from an ascending channel formation. As a result, the stock has surged deep into overbought conditions, creating a perfect opportunity for a technical pullback.
Therefore, investors could target downward profits at about $80.42, or lower at $75.86, while $88.57 is a crucial resistance level.
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