Marvell (NYSE:MRVL) Pre-Earnings: Here’s What to Expect

Shares of semiconductor company Marvell (MRVL) gained in today’s trading ahead of its Q3 earnings results on December 3 after the market closes. Analysts are expecting earnings per share to come in at $0.41 on revenue of $1.46 billion. This equates to a 0% increase in EPS but a 2.8% increase in revenue on a year-over-year basis.

It’s worth noting that MRVL has had a mixed track record when it comes to beating earnings. In fact, it has exceeded estimates five times during the past eight quarters. However, analysts seem to be confident that the company will be able to post better than expected figures. In fact, Oppenheimer recently raised its price target on MRVL stock from $90 to $110 per share while keeping its outperform rating.

The analysts believe Q3 results will come in better than expected, along with Q4 guidance. This will likely be driven by the company’s custom compute and networking/optics offerings, with tailwinds accelerating into 2025 due to product cycles. It’s worth noting that Oppenheimer’s lead MRVL analyst, Rick Schafer, is a five-star analyst with a 71% success rate and an average return of 24.7% per rating.

What Do Options Traders Anticipate?

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a large 8.86% price move in either direction. This estimate is derived from the $96 strike price, with call options priced at $4.36 and put options at $4.15.

Is MRVL Stock a Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MRVL stock based on 12 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 85% rally in its share price over the past year, the average MRVL price target of $100.50 per share implies 4.7% upside potential.

See more MRVL analyst ratings