Shares of Marvell Technology rose Friday after the chipmaker beat Wall Street's targets for its fiscal first quarter and guided higher for the current period. MRVL stock climbed more than 6% on the news.
The Santa Clara, Calif.-based company late Thursday said it earned an adjusted 52 cents a share on sales of $1.45 billion in the quarter ended April 30. Analysts polled by FactSet expected Marvell earnings of 51 cents a share on sales of $1.43 billion. On a year-over-year basis, Marvell earnings surged 79% while sales increased 74%.
For the current quarter, Marvell predicted adjusted earnings of 56 cents a share on sales of $1.52 billion. Wall Street had expected earnings of 55 cents a share on sales of $1.49 billion in the fiscal second quarter. In the year-earlier period, Marvell earned 34 cents a share on sales of $1.08 billion.
"We had a strong start to fiscal 2023," Chief Executive Matt Murphy said in a news release. "Revenue exceeded the midpoint of guidance, driven by higher-than-forecasted results from the data-center end market."
He added, "We are guiding for growth to continue in the second quarter, projecting revenue at the midpoint to grow 5% sequentially and 41% year over year."
MRVL Stock Rises After Report
On the stock market today, MRVL stock jumped 6.7% to close at 60.82. During the regular session Thursday, MRVL stock rose 5.6% to 56.99.
Marvell makes networking and data storage chips used in cloud computing, automotive, communications and other applications.
IBD Stock Checkup ranks MRVL stock as ninth out of 34 stocks in IBD's fabless semiconductor industry group. MRVL stock has a so-so IBD Composite Rating of 78 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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