Chipmaker Marvell Technology (MRVL) late Thursday edged above Wall Street’s targets for its fiscal second quarter and provided an in-line outlook for the current period. MRVL stock fell in extended trading.
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The Santa Clara, Calif.-based company earned an adjusted 33 cents a share on sales of $1.34 billion for the quarter ended July 29. Analysts polled by FactSet had expected Marvell earnings of 32 cents a share on sales of $1.33 billion. However, on a year-over-year basis, Marvell earnings declined 42% while sales shrank 12%.
Marvell’s earnings have now fallen for three straight quarters while sales have dropped for the last two quarters.
For the current quarter, Marvell predicted adjusted earnings of 40 cents a share on sales of $1.4 billion. Analysts called for earnings of 40 cents a share on sales of $1.39 billion in the fiscal third quarter. In the same period last year, Marvell earned 57 cents a share on sales of $1.54 billion.
MRVL Stock Drops After Report
In after-hours trading on the stock market today, MRVL stock dropped 5% to 54.45. During the regular session Thursday, MRVL stock crumpled 6.9% to close at 57.29 amid a rough day for semiconductor stocks.
Ahead of the earnings report, MRVL stock had been consolidating for the past 13 weeks at a buy point of 67.99, according to IBD MarketSmith charts.
Marvell makes networking and data storage chips used in cloud computing, automotive, communications and other applications.
In a news release, Chief Executive Matt Murphy said the company’s revenue picture is improving thanks to demand for artificial intelligence and cloud infrastructure.
“Demand from AI applications continues to strengthen, driving our overall revenue outlook from AI for this fiscal year even higher than previously outlined,” Murphy said. “Our strategy to focus on data infrastructure across a diverse set of end markets is serving us well despite the backdrop of a softening macroenvironment.”
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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