Marvell stock falls after disappointing earnings and outlook, as CEO cites ‘inventory reductions’ by some customers

Shares of Marvell Technology Inc.
MRVL,
-2.41%
were falling 7% in after-hours trading Thursday after the chip company fell short of expectations with its latest results and outlook. Marvell posted fiscal third-quarter net income of $13.3 million, or 2 cents a share, whereas it lost $62.6 million, or 8 cents a share, in the year-earlier period. On an adjusted basis, Marvell earned 57 cents a share, while analysts tracked by FactSet were anticipating 59 cents a share. Revenue rose to $1.537 billion from $1.211 billion, whereas the FactSet consensus was for $1.554 billion. “Inventory reductions, in particular at our storage customers, are impacting our near-term results and guidance, and we are working closely with them to manage their change in demand in an orderly fashion to clear the path to a resumption of growth,” Chief Executive Matt Murphy said in a release. For the fiscal fourth quarter, Marvell executives anticipate $1.4 billion in net revenue at the midpoint, as well as adjusted earnings per share of 41 cents to 51 cents. The FactSet consensus was for $1.6 billion in revenue and 62 cents in adjusted EPS.