By Tae Kim
Marvell Technology (MRVL.US) posted earnings results and gave financial guidance below Wall Street expectations, driving the stock lower in post market trading.
The semiconductor firm reported adjusted earnings per share of 46 cents for the January quarter, matching the consensus estimate of 46 cents among Wall Street analysts tracked by FactSet. Revenue came in at $1.43 billion, which was about in line with analysts’ expectations of $1.42 billion.
The company’s shares fell 10.2% to $76.41 in post-market trading following the release.
Management’s financial outlook was disappointing. Marvell forecast a range of potential revenue for the current quarter with a midpoint of $1.15 billion, compared with the consensus view that revenue will be $1.38 billion.
“While we are forecasting soft demand impacting consumer, carrier infrastructure, and enterprise networking in the near term, we expect revenue declines in these end markets to be behind us after the first quarter, and project a recovery in the second half of the fiscal year,” CEO Matt Murphy said in the earnings release.
Marvell sells a portfolio of chips and hardware products for the data center, 5G infrastructure, networking, and storage markets.
The company’s shares have risen by 41% this year, compared with a 24% rally for the iShares Semiconductor ETF, which tracks the performance of the ICE Semiconductor Index.
Write to Tae Kim at tae.kim@barrons.com