What to Watch in Marvell Technology’s Q3 Earnings
Marvell Technology (NASDAQ: MRVL) investors are in a celebratory mood right now thanks to its recently announced plan to acquire Cavium (NASDAQ: CAVM). In fact, Marvell stock has gained remarkably in recent days despite the potential dilution that will take place in the cash-and-stock deal expected to close in the middle of next year. Cavium shareholders will get $40 in cash and 2.1757 Marvell shares for each Cavium share.
Investors are clearly focusing on the long-term benefits that Cavium could bring, as it could turn out to be a great fit for Marvell's existing business, allowing it to move into the lucrative networking and data center space. But before the future beings with Cavium, Marvell is set to report third-quarter earnings on Tuesday.
These results will tell us about the health of the company's core storage business. Here's what to expect.
Source: Fool.com
