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Marvell stock declines on in-line earnings

Marvell stock declines on in-line earnings

Marvell Technology Group Ltd. shares declined in the extended session Wednesday after the chip maker reported quarterly earnings that met Wall Street expectations and forecast a potentially disappointing outlook in a relatively strong season for the industry.

shares fell 4.5% after hours, following a 4.8% decline in the regular session to close at $45.56 on a day that the tech-he avy Nasdaq Composite Index

dropped 2.7%.

The company reported fourth-quarter net income of $16.5 million, or 2 cents a share, compared with a gain of $1.77 billion, or 24 cents a share, in the year-ago period as Marvell included proceeds from its Wi-Fi connectivity business.

Adjusted earnings, which exclude stock-based compensation expenses and other items, were 29 cents a share, compared with 17 cents a share in the year-ago quarter.

Revenue rose to $797.8 million from $717.7 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 29 cents a share on revenue of $786.1 million.

Marvell expects adjusted earnings of 23 cents to 31 cents a share on revenue of $760 million to $840 million for the first quarter, while analysts had forecast earnings of 27 cents a share on revenue of $786.8 million.

This past quarter has been particularly strong for chip makers, who face high demand and short supply, with the majority of companies in the sector reporting earnings and forecasting an outlook that had exceeded Wall Street expectations.

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Erin Clark

Erin is a sports enthusiast who loves indulging in occasional football matches. She is a passionate journalist who flaunts a perfect hold over the English language. She currently caters her skills for the sports and health section of Report Door.

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