Marvell Delivers Better-Than-Expected Q1 Results; Street Says Buy

Marvell (MRVL) rose 4.3% in Monday’s extended trading session after the chipmaker announced strong fiscal first-quarter 2022 results. Marvell develops and produces semiconductors and related technology.

The fiscal first-quarter results include the contributions from the Inphi acquisition, which the company completed on April 20.

Revenues of $832.3 million surpassed the Street’s estimates of $804.2 million and jumped 20% from the year-ago period.

Earnings came in at $0.29 per share, beating the consensus estimates of $0.27 per share and soaring 61.1% year-over-year.

Marvell CEO Matt Murphy said, “The acquisition of Inphi increases and accelerates our growth opportunity in the data center, Marvell’s largest end market by revenue.”

He further added, “Marvell’s outlook for strong revenue growth in the second quarter highlights robust demand across all our key end markets. I have never felt stronger about our prospects and believe that we are at the beginning of a multi-year growth cycle.” (See Marvell stock analysis on TipRanks)

For fiscal Q2, the company expects revenues of $1.065 billion (+/- 3%), versus the consensus estimate of $1.04 billion. Adjusted earnings per share are expected to land in the range of $0.28 – $0.34, versus consensus forecasts of $0.30.

Following the fiscal Q1 earnings release, BMO Capital Markets analyst Ambrish Srivastava maintained a Buy rating and a price target of $60 (24.3% upside potential).

Srivastava commented, “We are bullish on Marvell’s acquisition of Inphi.”

He further added, “We believe the acquisition adds a set of capabilities that is unique and positions the company in a stronger footing as it builds out its infrastructure business.”

Consensus among analysts is a Strong Buy based on 11 Buys and 1 Hold. The MRVL average analyst price target stands at $58.09 and implies upside potential of 20.3% to current levels. Shares have gained 38.1% over the past year.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Marvell, with 3.2% of investors increasing their exposure to MRVL stock over the past 30 days.

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