Marvell Shares Soaring on 1Q Earnings and Bullish Analysts' Comments NEW YORK (AP) -- Shares of communications equipment chip maker Marvell Technology Group Ltd. soared in Friday afternoon trading after the company topped first-quarter profit expectations and a chorus of bullish comments from analysts rang out. Shares of Marvell, which traded between $37.31 and $73.67 over the last year, rose $5.47, or 11 percent, to $55.18 in afternoon trading on the Nasdaq. Among those impressed, Morgan Stanley analyst Louis Gerhardy said the Bermuda-based company took "the monkey off investors' backs." He lifted his 2007 earnings estimate to $1.92 per share from $1.90 per share. Analysts currently expect, on average, earnings of $1.87 per share for 2007. Several Wall Street analysts were particularly impressed with the company's raised 2007 revenue outlook of $2.37 billion to $2.425 billion, up from previous guidance of $2.25 billion to $2.30 billion. Although revenue growth is projected to come from the company's acquisition of semiconductor maker Avago, the financial community was satisfied nonetheless. "While a large part of the (revenue) increase is based on the inclusion of the Avago acquisition, the company's core revenue outlook was still increased about 1 percent even with the assumption the company will realize no revenue from the Maxtor 160G platform in the second-half of the year," Gerhardy wrote in a note. "This will be greeted with a major sigh of relief by investors."
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