Investors in Marvell Technology, Inc. (NASDAQ:MRVL) had a good week, as its shares rose 6.1% to close at US$76.24 following the release of its quarterly results. Revenues came in at US$1.3b, in line with expectations, while statutory losses per share were substantially higher than expected, at US$0.22 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Marvell Technology's 30 analysts are now forecasting revenues of US$5.53b in 2025. This would be an okay 4.8% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 54% to US$0.51. Before this latest report, the consensus had been expecting revenues of US$5.41b and US$0.47 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a modest increase to its losses per share forecasts.

The consensus price target stayed unchanged at US$92.62, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Marvell Technology analyst has a price target of US$120 per share, while the most pessimistic values it at US$75.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Marvell Technology's revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. Factoring in the forecast slowdown in growth, it seems obvious that Marvell Technology is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Marvell Technology. Long-term earnings power is much more important than next year's profits. We have forecasts for Marvell Technology going out to 2027, and you can see them free on our platform here.

You can also see whether Marvell Technology is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.