Marvell Technology’s (MRVL) stock is down 15% after the company posted financial results that were only slightly better than Wall Street forecasts.
The Silicon Valley-based chipmaker announced Fiscal fourth quarter earnings per share (EPS) of $0.60, which was a little head of the $0.59 expected among analysts. Revenue of $1.82 billion was also marginally better than the Wall Street consensus forecast of $1.80 billion.
Additionally, Marvell Technology offered forward guidance that was largely inline with analyst estimates. For the current quarter, Marvell’s management team said they expect revenue of $1.875 billion, compared to analysts’ expectations of $1.87 billion.
Hoping for More
Investors were apparently hoping for more from Marvell’s latest earnings, sending the company’s stock sharply lower in after hours trading. The company sells microchips and processors used in data centers, 5G wireless internet infrastructure, networking, and storage markets. It also helps large technology companies design their own artificial intelligence (AI) semiconductors.
“Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products,” said Marvell CEO Matt Murphy in the company’s earnings release. “We anticipate strong revenue growth for the full fiscal year.”
MRVL stock has gained 11% over the last year.
Is MRVL Stock a Buy?
The stock of Marvell Technology has a consensus Strong Buy rating among 23 Wall Street analysts. That rating is based on 22 Buy and one Hold recommendations issued in the last three months. The average MRVL price target of $137.21 implies 52.22% upside from current levels. These ratings are likely to change after the company’s latest financial results.