Marvell Technology Group ($MRVL) looked like an enticing bet going into its first-quarter fiscal 2022 earnings report thanks to a bunch of powerful catalysts, and the company didn't disappoint. The chipmaker bested Wall Street's estimates as its top and bottom lines shot up remarkably, while the outlook was solid enough to send the stock higher after the earnings report.
Robust demand from several fast-growing end markets gave Marvell a nice boost during the quarter, a trend that's likely to continue for a long time to come. Let's look closely at the factors driving Marvell's growth and see why it is one of the top growth stocks you can buy right now.
Marvell's revenue jumped 20% year over year to $832.3 million in Q1, easily clearing the consensus estimate of $806.7 million. Adjusted earnings came in at $0.29 per share, a substantial increase over the prior-year period's figure of $0.18 per share and ahead of the $0.27 per-share analyst estimate. The results were better than what Marvell was anticipating.
Marvell's Q2 outlook provides further evidence that this is a high-growth company. It expects $1.06 billion in revenue at the midpoint of its guidance range, up 46% year over year. The adjusted gross margin is expected to increase 70 basis points year over year to 64%. The adjusted earnings of $0.31 per share would be a major improvement over the year-ago period's figure of $0.21. Wall Street was expecting $0.30 per share in earnings on $841 million in revenue.
What's more, analysts expect Marvell to clock annual earnings growth of over 35% over the next five years, handsomely outpacing the 13% CAGR (compound annual growth rate) seen in the last five years. The chipmaker looks well placed to deliver such strong earnings growth in the future thanks to the opportunities it is sitting on, which is why investors looking to add a tech stock benefiting from the 5G rollout and data center investments should consider buying Marvell Technology Group.
It isn't too late to buy the stock!
Track its performance here: https://zyne.com/stock/MRVL
Robust demand from several fast-growing end markets gave Marvell a nice boost during the quarter, a trend that's likely to continue for a long time to come. Let's look closely at the factors driving Marvell's growth and see why it is one of the top growth stocks you can buy right now.
Marvell's revenue jumped 20% year over year to $832.3 million in Q1, easily clearing the consensus estimate of $806.7 million. Adjusted earnings came in at $0.29 per share, a substantial increase over the prior-year period's figure of $0.18 per share and ahead of the $0.27 per-share analyst estimate. The results were better than what Marvell was anticipating.
Marvell's Q2 outlook provides further evidence that this is a high-growth company. It expects $1.06 billion in revenue at the midpoint of its guidance range, up 46% year over year. The adjusted gross margin is expected to increase 70 basis points year over year to 64%. The adjusted earnings of $0.31 per share would be a major improvement over the year-ago period's figure of $0.21. Wall Street was expecting $0.30 per share in earnings on $841 million in revenue.
What's more, analysts expect Marvell to clock annual earnings growth of over 35% over the next five years, handsomely outpacing the 13% CAGR (compound annual growth rate) seen in the last five years. The chipmaker looks well placed to deliver such strong earnings growth in the future thanks to the opportunities it is sitting on, which is why investors looking to add a tech stock benefiting from the 5G rollout and data center investments should consider buying Marvell Technology Group.
It isn't too late to buy the stock!
Track its performance here: https://zyne.com/stock/MRVL
