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Marvell Shares Rise Nearly 18% on Q3 Earnings & Q4 Revenue Outlook

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Shares of Marvell Technology established a new 52-week high after the infrastructure semiconductor solutions firm reported Q3/22 financial results than included a 61% increase in YoY revenue.

After U.S. markets closed for trading yesterday, data infrastructure semiconductor solutions provider Marvell Technology Inc. (MRVL:NASDAQ), announced financial results its third quarter of 2022 ended October 30, 2021.

Marvell Technology advised that on October 5, 2021, it completed its US$1.1 billion acquisition of Innovium Inc. which was first announced on August 3, 2021. The company noted that due to the integration of Innovium's business into its operations, the Q3/22 financial results include approximately 25 days of activity from the acquired business in its consolidated operations. The mentioned therefore that "the Q3/22 financial results include the results of Innovium from the acquisition date, while prior periods presented do not."

Marvell reported that in Q3/22 it posted net revenue $1.211 billion, compared to $750.143 million in Q3/21. The firm noted that Q3/22 revenue levels exceeded the midpoint of its sales guidance issued on August 26, 2021.

The firm indicated that in Q3/22 it achieved a GAAP gross margin of 48.5% and a non-GAAP gross margin of 65.1%

The company stated that in Q3/22 it posted a GAAP net loss of $62.532 million, or $0.08 per diluted share, versus a a GAAP net loss of $22.908 million, or $0.03 per diluted share in Q3/21.

The firm added that on a non-GAAP basis, Q3/22 net income was $364.315 million, or $0.43 per diluted share, compared to $168.359 million, or $0.25 per diluted share in Q3/21.

The company's President and CEO Matt Murphy commented, "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."

The company offered some forward guidance for Q4/22 which it said includes the first full quarter's expected results from Innovium.

Marvell advised that for Q4/22 it expects net revenue will come in at $1.320 billion (+/- 3%). The company stated that it anticipates that GAAP gross margin will range between 47.9-49.8% and that non-GAAP gross margin will come in at around 65%.

The company added that it expects GAAP operating expenses of $630-640 million and estimates a GAAP diluted loss per share of $0.03 (+/- $0.04 per share) based upon 861 million weighted average shares outstanding. The firm added that non-GAAP diluted income per share is expected to be $0.48 (+/- $0.03 per share).

Marvell Technology is a data infrastructure semiconductor solutions firm headquartered in Santa Clara, Calif. The company is a major player in providing mixed signal semiconductor solutions for the communications and cloud markets. The firm stated that "it moves, stores, processes and secures the world's data with semiconductor solutions designed for our customers' current needs and future ambitions." The company is a leading enterprise, cloud, automotive and telecommunications supplier.

Marvell Technology started the day Friday with a market cap of around $58.5 billion with approximately 823.6 million shares outstanding and a short interest of about 2.1%. MRVL shares opened nearly 21% higher Friday at $85.885 (+$14.855, +20.91%) over Thursday's $71.03 closing price and reached a new 52-week high price yesterday morning of $88.49. The stock traded Friday between $80.47 and $88.49 per share and closed for trading at $83.59 (+$12.56, +17.68%).


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