Marvell logs slight earnings beat for latest quarter
Marvell Technology Inc. expects a sequential acceleration in its data-center business during the current quarter, and its shares were heading higher in Thursday’s aftermarket action despite lower-than-expected overall guidance.
The chip company logged a fiscal third-quarter net loss of $164.3 million, or 19 cents a share, whereas it recorded net income of $13.3 million, or 2 cents a share, in the year-earlier period. On an adjusted basis, Marvell MRVL, -0.66% posted earnings per share of 41 cents, down from 57 cents a year prior, while analysts were modeling 40 cents.
Revenue fell to $1.42 billion from $1.54 billion but exceeded the FactSet consensus, which was for $1.40 billion.
The company saw data-center revenue decline 11% to $556 million, while analysts had been expecting $525 million. However, revenue for the segment was up more than 20% sequentially, and the company models more than 30% sequential growth for the end market in the fiscal fourth quarter.
Marvell’s stock was up more than 2% in Thursday’s extended session.
“The diversification of our portfolio is serving us well, with strong growth from AI and cloud carrying us through a softening demand environment in other end markets,” Chief Executive Matt Murphy said in a release. “These dynamics are reflected in our forecast for overall revenue to be flat sequentially in the fourth quarter at the midpoint of guidance.”
For the fiscal fourth quarter, Marvell models overall revenue of $1.42 billion at the midpoint, whereas analysts were looking for $1.46 billion. The company also anticipates 46 cents in adjusted earnings per share at the midpoint, which compares with the 49 cents that analysts had been modeling.