Marvell Technology is set to release its earnings report for Q3 FY25 on December 3, 2024, after the market closes. Analysts are expecting an EPS of $0.41 and revenue of $1.457 billion for the quarter.

Earnings Highlights:

When comparing year-over-year (YoY), the EPS of $0.41 indicates a slight increase of 2.5% over last year’s $0.40. On a quarter-over-quarter (QoQ) basis, the EPS shows a significant 36.7% growth from $0.30 reported in Q3 2024. Revenue is also expected to grow, with a YoY increase of 2.7% from $1.418 billion and a QoQ jump of 14.5% from $1.273 billion.

Key metrics include a non-GAAP gross margin of 61.9% and an operating margin of 26.1%. The company has not disclosed specific annual recurring revenue (ARR) figures but anticipates notable growth driven by AI and custom silicon programs.

While Marvell sees strong growth potential in AI and custom silicon products, challenges such as inventory corrections in the automotive and industrial sectors and competition in the custom silicon space may pose risks.

Guidance:

For Q3 2025, the company projects revenue in the range of $1.45 billion, with a GAAP gross margin of around 47.2% and a non-GAAP gross margin of 61%. Sequential growth of 14% is expected, supported by robust demand in the AI sector and data centre markets.

Last 4 earnings reaction:

Aug 29, 2024: Company report after market. Stock pumped more than 9% next day.

May 30, 2024: Company report after market. Stock dropped more than 10% next day.

Mar 7, 2024: Company report after market. Stock dropped more than 11% next day.

Nov 30, 2023: Company report after market. Stock dropped more than 5% next day.

Technical:

Marvell stock is currently trading at $96.2 up 3.8% today. The stock closed the previous week at $92.69 with 0.19% increase over the week. Today stock broke its previous all-time high and created new all-time high of $97.63. Stock short-term price target is $111 while mid to long term price target is $129.

The stock is in strong bullish momentum at daily timeframe. 50, 100 and 200 day EMAs are at $84, $79 and $73. All these EMAs will act as a strong support in case of pullback. At daily timeframe RSI is at 69 while MACD is turning bullish.