Marvell Technology Inc MRVL shares are trading lower in Thursday's after-hours session after the company turned in worse-than-expected financial results, issued guidance below estimates, and warned of a negative impact from "inventory reductions."
What Happened: Marvell said third-quarter revenue grew by 27% year-over-year to $1.537 billion. The number missed average analyst estimates of $1.56 billion, according to Benzinga Pro. The company said its strong top-line results were driven by cloud, 5G and automotive, as well as share and content gains in its enterprise networking end market.
Marvell reported third-quarter earnings of 57 cents per share, which also missed estimates. According to Benzinga Pro, analysts were looking for earnings of 59 cents per share.
"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," said Matt Murphy, president and CEO of Marvell.
Marvell expects fourth-quarter revenue of $1.4 billion, plus or minus 5% versus estimates of $1.61 billion. The company sees fourth-quarter earnings between 41 cents and 51 cents per share versus estimates of 62 cents per share.
MRVL Price Action: Marvell shares were down 7.03% in after hours at $42.21 at time of publication, according to Benzinga Pro.
Photo: courtesy of Marvell.
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