Saturday, February 4, 2023
HomeMarketMarvell stock falls after disappointing earnings and outlook, as CEO cites 'inventory...

Marvell stock falls after disappointing earnings and outlook, as CEO cites ‘inventory reductions’ by some customers

- Advertisement -

Shares of Marvell Technology Inc.
MRVL,
-2.41%
were falling 7% in after-hours trading Thursday after the chip company fell short of expectations with its latest results and outlook. Marvell posted fiscal third-quarter net income of $13.3 million, or 2 cents a share, whereas it lost $62.6 million, or 8 cents a share, in the year-earlier period. On an adjusted basis, Marvell earned 57 cents a share, while analysts tracked by FactSet were anticipating 59 cents a share. Revenue rose to $1.537 billion from $1.211 billion, whereas the FactSet consensus was for $1.554 billion. “Inventory reductions, in particular at our storage customers, are impacting our near-term results and guidance, and we are working closely with them to manage their change in demand in an orderly fashion to clear the path to a resumption of growth,” Chief Executive Matt Murphy said in a release. For the fiscal fourth quarter, Marvell executives anticipate $1.4 billion in net revenue at the midpoint, as well as adjusted earnings per share of 41 cents to 51 cents. The FactSet consensus was for $1.6 billion in revenue and 62 cents in adjusted EPS.

Credit: marketwatch.com

RELATED ARTICLES
- Advertisment -

Most Popular