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Aug. 27, 2021, 8:10 a.m. EDT

Marvell Technology stock slides as outlook overshadows earnings beat

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By Wallace Witkowski

Marvell Technology Group Ltd. shares fell in the extended session Thursday after part of the chip maker’s outlook range fell below the Wall Street consensus amid a global chip shortage.

Marvell  /zigman2/quotes/200053236/composite MRVL +0.11%  shares fell 4% after hours, following a 0.1% rise in the regular session to close at $63.24.

Marvell forecast adjusted third-quarter earnings of 35 cents to 41 cents a share on revenue of $1.11 billion to $1.18 billion. Analysts expect 37 cents a share on revenue of $1.13 billion.

Meanwhile, the company reported a fiscal second-quarter loss of $276.4 million, or 34 cents a share, compared with a loss of $88.2 million, or 13 cents a share, in the year-ago period.

Adjusted earnings, which exclude stock-based compensation expenses and other items, were 34 cents a share, compared with 21 cents a share in the year-ago quarter.

Revenue rose to $1.08 billion from $727.3 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 31 cents a share on revenue of $1.07 billion.

“I am pleased that stand-alone Marvell and the acquired Inphi businesses both contributed to our strong year-over-year revenue growth,” said Matt Murphy, Marvell’s chief executive, in a statement. “We expect year-over-year revenue growth will accelerate in the third quarter, led by substantial contributions from the cloud data-center market. In addition, we expect our 5G business to continue to grow with strong sequential revenue growth in the third quarter, and a significant step-up projected in the fourth quarter.”

Marvell announced its intention to  acquire Inphi Corp. last October , and closed the deal in April.

Over the past 12 months, Marvell shares have surged 78%, compared with a 50% gain by the PHLX Semiconductor Index  /zigman2/quotes/210598361/realtime SOX +0.0018% , a 29% rise by the S&P 500 index  /zigman2/quotes/210599714/realtime SPX +1.42% , and a 28% gain by the tech-heavy Nasdaq Composite Index  /zigman2/quotes/210598365/realtime COMP +0.83% .

/zigman2/quotes/200053236/composite
US : U.S.: Nasdaq
$ 71.03
+0.08 +0.11%
Volume: 10.77M
Dec. 2, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.34%
Market Cap
$58.44 billion
Rev. per Employee
$555,974
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/zigman2/quotes/210598361/realtime
US : Nasdaq
3,810.81
+0.07 +0.0018%
Volume: 246,425
Dec. 2, 2021 5:16p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,577.10
+64.06 +1.42%
Volume: 2.80B
Dec. 2, 2021 5:08p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
15,381.32
+127.27 +0.83%
Volume: 4.53M
Dec. 2, 2021 5:16p
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