Cavium: Marvell stock jumps after new details on Cavium merger shared

Marvell Technology Group Ltd. shares jumped in after-hours trading Thursday afternoon following commentary from Marvell executives on the integration of $6 billion acquisition Cavium Inc. Shares had wavered between gains and slight losses after the chip maker released its first earnings report since the Cavium deal closed, but shot to gains of nearly 10% after executives disclosed higher estimates for cost savings and said the Cavium addition would help it hit hoped-for revenue gains. "I'm very confident that our combined team will drive us towards our long term 6% to 8% annual revenue growth target," Marvell Chief Executive Matt Murphy said in a conference call Thursday afternoon, adding that cost synergies previously forecast at $150 million to $175 million per year would actually hit $200 million a year by the end of fiscal 2020. Marvell reported combined second-quarter earnings -- which included about a month of Cavium results, as the deal closed during the quarter -- of a penny a share on revenue of $665.3 million, up from $604.8 million a year ago. After adjustments, the company claimed earnings of 28 cents a share, though it said the total would have been 35 cents a share without Cavium. Analysts on average expected adjusted earnings of 34 cents a share on sales of $616 million, according to FactSet. Marvell shares are down 9.4% on the year, as the S&P 500 index has gained 8%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.