Marvell Q2 EPS Beats Street; Q3 Outlook Disappoints

shares trended down after hours when the company said third-quarter results won't meet Street views. Marvell forecast third-quarter adjusted earnings of of $0.27 to $0.31 a share, on revenue of $960 million to $1 billion. Analysts expect $0.32 on revenue of $1.1 billion. The semiconductor manufacturer's second-quarter earnings beat analysts expectations by more than 20 percent while revenue was essentially in line with the consensus. Free cash flow in the recent period totaled $137 million, compared with $211 million first quarter and $65 million a year earlier. Gross margin widened to 50.3 percent from 48.4 percent a year earlier, while second-quarter operating expenses fell to $363.4 million from $725.1 million. Second-quarter net income grew 20 percent to $138.9 million, or $0.27 a share, from $115 million or $0.23 a share a year earlier. Adjusted income was $0.34 a share. Revenue fell 38 percent to $961.5 million, from $1.54 billion a year earlier. Wall Street expected adjusted income of $0.28 a share on revenue of $961.6 million. Marvell traded recently after-hours at $13.50, down one percent.