Marvell Technology stock slips on disappointing Q1 outlook
Marvell Technology (MRVL) reported fourth-quarter results that were in line with Wall Street expectations. Adjusted earnings per share of $0.46 matched the $0.46 estimate. Revenue of $1.43 billion was about in line with the expected $1.42 billion. However, the guidance for first-quarter earnings and revenue fell short of expectations.
Yahoo Finance's Julie Hyman and Josh Lipton break down the results.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JULIE HYMAN: We've got breaking news. Earnings from Marvell Technology and the shares are sinking 11% after the company's first quarter forecast for revenue and earnings per share missed estimates. So the company coming out and saying its first quarter adjusted earnings per share will be $0.18 to $0.28.
And it looks like analysts have been looking for $0.41 a share here. So again, coming in below what analysts had been anticipating. And obviously, this is disappointing given that there's been a lot of focus on something like a Marvell here. Actually, let me correct that for a moment. I believe, they are actually forecasting a loss per share for the first quarter of the year where analysts had been predicting a gain.
Now, Matt Murphy, the CEO striking a positive tone in the statement today, saying in particular, data center and market revenue was up 38% sequentially and 54% year-over-year. So we'll certainly be digging into the call and what that shortfall is about.
JOSH LIPTON: Yeah. I mean, heading into this, remember, this is one of those names, Julie. I mean, it was up about 40% this year. It was up more than 100% over the past 12 months. It is interesting to look at CEO Matt Murphy's comments here because he notes how, listen, we are forecasting what he calls soft demand.
He says that's going to impact consumer carrier infrastructure enterprise networking in the near term. Now, he says we expect revenue declines in these end markets to be behind us after the first quarter. And he goes on to say, we're projecting a recovery in the second half of the fiscal year. But at least initially in the after hours, you can see investors are selling down more than 10%.
JULIE HYMAN: Yeah. And like many other chip makers, these shares have been climbing into the report. They're up about 41%--
JOSH LIPTON: Yeah, huge move.
JULIE HYMAN: --just for this year here. And I believe Marvell is on the record list today as well that it was at a record high.
