When Marvell Technology Group Ltd. (NASDAQ: MRVL) released its fiscal third-quarter results after the markets closed on Tuesday, it posted $0.34 in earnings per share (EPS) and $616.3 million in revenue. Consensus estimates had called for $0.33 in EPS on revenue of $613.1 million. The same period of last year reportedly had EPS of $0.21 and $604.75 million in revenue.

On November 20, 2017, Marvell announced a definitive agreement to acquire all outstanding shares of the common stock of Cavium. The transaction is expected to close in mid-calendar 2018. It is still subject to regulatory approval and other customary closing conditions, including a shareholder vote.

During the quarter, gross margin totaled 61.6%, up from 57.6% in the same period of last year.

In terms of guidance for the fiscal fourth-quarter, management expects to see EPS in the range of $0.29 to $0.33 and revenues between $595 million and $625 million. The consensus estimates are $0.28 in EPS and $590.41 million in revenue for the quarter.

On the books, Marvell cash, cash equivalents and short-term investments totaled $1.73 billion at the end of the quarter, up from $1.67 billion at the end of the previous fiscal year.

Matt Murphy, Marvell’s president and CEO, commented:

Our strong performance in the third quarter is a direct result of growth in our core businesses and improved execution across the company, enabling us to continue to unlock the earnings power of Marvell.

Shares of Marvell were last seen down about 4% at $22.42, with a consensus analyst price target of $25.48 and a 52-week range of $13.59 to $24.22.

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