MRVL Stock: Marvell Technology Meets Estimates But Guides Lower

Chipmaker Marvell Technology (MRVL) late Thursday reported largely in-line results for its fiscal second quarter but guided lower for the current period. MRVL stock fell in extended trading.

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The Santa Clara, Calif.-based company earned an adjusted 57 cents a share on sales of $1.52 billion in the quarter ended July 30. Analysts polled by FactSet expected Marvell earnings of 56 cents a share on sales of $1.52 billion. On a year-over-year basis, Marvell earnings rose 68% while sales increased 41%.

For the current quarter, Marvell predicted earnings of 59 cents a share on sales of $1.56 billion. But Wall Street analysts had forecast earnings of 61 cents a share on sales of $1.58 billion in the fiscal third quarter.

Marvell makes networking and data storage chips used in cloud computing, automotive, communications and other applications.

MRVL Stock Drops After The Close

During after-hours trading on the stock market today, MRVL stock dropped 2.3% to 53.80. During the regular session Thursday, MRVL stock rose 5.5% to close at 55.09.

“This was the ninth straight quarter of sequential revenue growth, and we are guiding for growth to continue in the third quarter, as we expand our leadership in data infrastructure,” Chief Executive Matt Murphy said in a news release.

He added, “Looking ahead, we expect sequential revenue growth to accelerate in the fourth quarter as supply constraints begin to ease.”

Earnings Season Winds Down

Marvell is one of the last semiconductor stocks to report results during the second-quarter earnings season.

On Wednesday, Nvidia (NVDA) met reduced expectations for its fiscal second quarter but guided much lower than views for the current period. Nvidia expects its video game chip business to remain weak in its fiscal third quarter.

Last week, Analog Devices (ADI) and Wolfspeed (WOLF) posted better-than-expected quarterly results. Analog Devices delivered 47% profit growth and a 77% sales spike, but also noted some weakness ahead. Wolfspeed, with growing exposure to the electric-vehicle market, crushed views with a 57% sales gain and strong guidance.

The earnings season for semiconductor stocks wraps up next week with reports from Ambarella (AMBA), Broadcom (AVGO) and Semtech (SMTC).

MRVL stock ranks 10th out of 34 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has a mediocre IBD Composite Rating of 69 out of 99.

IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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