Marvell Technology stock slides as outlook overshadows earnings beat

Dow Jones2021-08-27

Marvell Technology Group Ltd. shares fell in the extended session Thursday after part of the chip maker's outlook range fell below the Wall Street consensus amid a global chip shortage.

Marvell $(MRVL)$ shares fell 4% after hours, following a 0.1% rise in the regular session to close at $63.24.

Marvell forecast adjusted third-quarter earnings of 35 cents to 41 cents a share on revenue of $1.11 billion to $1.18 billion. Analysts expect 37 cents a share on revenue of $1.13 billion.

Meanwhile, the company reported a fiscal second-quarter loss of $276.4 million, or 34 cents a share, compared with a loss of $88.2 million, or 13 cents a share, in the year-ago period.

Adjusted earnings, which exclude stock-based compensation expenses and other items, were 34 cents a share, compared with 21 cents a share in the year-ago quarter.

Revenue rose to $1.08 billion from $727.3 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 31 cents a share on revenue of $1.07 billion.

"I am pleased that stand-alone Marvell and the acquired Inphi businesses both contributed to our strong year-over-year revenue growth," said Matt Murphy, Marvell's chief executive, in a statement. "We expect year-over-year revenue growth will accelerate in the third quarter, led by substantial contributions from the cloud data-center market. In addition, we expect our 5G business to continue to grow with strong sequential revenue growth in the third quarter, and a significant step-up projected in the fourth quarter."

Marvell announced its intention to acquire Inphi Corp. last October, and closed the deal in April.

Over the past 12 months, Marvell shares have surged 78%, compared with a 50% gain by the PHLX Semiconductor Index , a 29% rise by the S&P 500 index , and a 28% gain by the tech-heavy Nasdaq Composite Index .

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