Shares of Marvell Technology Group (MRVL +0.75%) are surging 5% higher in after-hours trading, driven by a strong third-quarter report.
Non-GAAP earnings jumped 60% higher year over year, landing at $0.32 per share. Revenue increased 19% to $931 million. Analysts would have settled for adjusted earnings of $0.25 per share on $870 million in estimated sales. Free cash flows came in at $157 million, which was a 39% improvement over the year-ago quarter.
Marvell's management explained the surprisingly strong results with high demand across the board. Mobile, wireless, and storage customers for Marvell's specialized chips provided the strongest growth drivers, leaving only ethernet networking solutions behind.
"We continue to make excellent progress in our end markets with new innovative products and remain committed to delivering above industry revenue and profit growth as we head into next year," said Marvell CEO and Chairman Sehat Sutardja.
Looking ahead, Marvell guided to fourth-quarter sales around $900 million and non-GAAP earnings in the neighborhood of $0.25 per share. These projections were also well ahead of Wall Street's estimates, which currently call for fourth-quarter EPS of $0.23 on $844 in total revenue.
