Marvell Technology, ticker symbol MRVL, slightly exceeded analyst estimates for its fiscal third quarter, but fell short with its fourth-quarter guidance, causing MRVL stock to drop in extended trading late Thursday.
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The company, based in Santa Clara, Calif., reported earnings of 41 cents a share on sales of $1.42 billion for the quarter ended Oct. 28. These results slightly surpassed analyst estimates. However, Marvell saw a 28% decrease in earnings, and an 8% decline in sales year over year.
For the upcoming quarter, Marvell projected adjusted earnings of 46 cents a share on sales of $1.42 billion, lower than analyst expectations of earnings of 49 cents a share on sales of $1.46 billion.
“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,” said Chief Executive Matt Murphy in a news release.
He added, “These dynamics are reflected in our forecast for overall revenue to be flat sequentially in the fourth quarter at the midpoint of guidance.”
MRVL Stock Is Consolidating
In after-hours trading on the stock market today, MRVL stock fell 3.8% to 53.64. During the regular session Thursday, MRVL stock dipped 0.7% to close at 55.73.
Marvell manufactures networking and data storage chips used in cloud computing, automotive, communications, and other applications. MRVL stock has been in a consolidation pattern for the past 27 weeks with a buy point of 67.99, according to IBD MarketSmith charts.
Marvell ranks 10th out of 37 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. MRVL stock has an IBD Composite Rating of 73 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software, and semiconductor stocks.
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