By Tae Kim

Marvell Technology stock fell sharply late Wednesday after the company posted slightly better-than-expected earnings.

For its fiscal fourth quarter ending January, the company reported revenue of $1.82 billion versus the Wall Street consensus of $1.8 billion, according to FactSet. Adjusted earnings came in at 60 cents per share, which is above the 59 cents analysts' consensus estimate.

Guidance was roughly inline. For the current quarter, Marvell guided to a revenue range of $1.875 billion at the midpoint, compared to analysts' expectations of $1.87 billion.

Investors were apparently hoping for more. Marvell shares were down 17% in after-hours trading following the earnings report.

This is breaking news. Read a preview of Marvell earnings below and check back for more analysis soon.

Marvell Technology will report its fiscal fourth-quarter earnings after the market close. Investors are hoping the company will give a positive update about the outlook for its sales of artificial-intelligence chips for the rest of this year.

The Wall Street consensus expectations for Marvell are for the company to report January quarter revenue of $1.8 billion with adjusted earnings per share of 59 cents. For the current quarter, the consensus calls among analysts are for revenue of $1.87 billion and EPS of 60 cents

Marvell sells a portfolio of chips and hardware products for the data center, 5G infrastructure, networking, and storage markets. It also helps large technology companies design their own AI semiconductors, called ASICS, or application specific integrated circuits.

Last week, Raymond James analyst Srini Pajjuri reaffirmed his Outperform rating on Marvell stock.

"We expect the custom AI accelerator market to grow to $50B+ by 2028, and believe that MRVL is well-positioned for significant share given its strong IP, system-level expertise, and execution track record," he wrote.

Marvell stock has gained 10% over the past 12 months.

Write to Tae Kim at tae.kim@barrons.com

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March 05, 2025 16:22 ET (21:22 GMT)

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