Earnings Update: Marvell Technology, Inc. (NASDAQ:MRVL) Just Reported And Analysts Are Boosting Their Estimates

Shareholders will be ecstatic, with their stake up 26% over the past week following Marvell Technology, Inc.'s (NASDAQ:MRVL) latest third-quarter results. The results don't look great, especially considering that statutory losses grew 832% toUS$0.78 per share. Revenues of US$1.5b did beat expectations by 4.0%, but it looks like a bit of a cold comfort. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Marvell Technology after the latest results.

See our latest analysis for Marvell Technology

Following the latest results, Marvell Technology's 33 analysts are now forecasting revenues of US$8.11b in 2026. This would be a substantial 51% improvement in revenue compared to the last 12 months. Marvell Technology is also expected to turn profitable, with statutory earnings of US$1.01 per share. In the lead-up to this report, the analysts had been modelling revenues of US$7.51b and earnings per share (EPS) of US$0.54 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Marvell Technology 24% to US$118on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Marvell Technology at US$140 per share, while the most bearish prices it at US$74.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Marvell Technology's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Marvell Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Marvell Technology's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Marvell Technology analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Marvell Technology you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.