Shares of Marvell Technology Inc. fell 9% in after-hours trading Thursday after the chip company met expectations with results for its latest quarter but blamed inventory corrections for an outlook that came in below the consensus view.
The company generated a fiscal fourth-quarter net loss of $15.4 million, or 2 cents a share, versus net income of $6.2 million, or 1 cent a share, in the year-earlier period. On an adjusted basis, Marvell $(MRVL)$ earned 46 cents a share, down from 50 cents a share a year before, while analysts tracked by FactSet were expecting 46 cents.
Marvell's revenue rose to $1.42 billion from $1.34 billion a year before, whereas the FactSet consensus was for $1.40 billion.
For the fiscal first quarter, Marvell executives expect $1.30 billion in revenue at the midpoint, whereas analysts were expecting $1.38 billion. Management also models 29 cents in adjusted earnings per share at the midpoint, while the FactSet consensus was for 42 cents.
"While inventory corrections and resulting changes in product mix are impacting our guidance for fiscal first quarter revenue and gross margin, we expect these headwinds to subside later in fiscal 2024, as inventory levels normalize, and Marvell-specific growth drivers accelerate," Chief Executive Matt Murphy said in a release.
The company anticipates a GAAP gross margin of 45.1% at the midpoint and a non-GAAP gross margin of about 60% for the current quarter.
Shares of Marvell have lost 32% over the past 12 months, as the S&P 500 index has declined 9%.