Chipmaker Marvell Technology (MRVL) late Wednesday matched Wall Street’s target for earnings in its fiscal fourth quarter and beat views on revenue. Its guidance also was mixed. MRVL stock fell in extended trading.
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The Santa Clara, Calif.-based company earned an adjusted 29 cents a share on sales of $797.8 million in the quarter ended Jan. 30. Analysts expected Marvell earnings of 29 cents a share on sales of $794.3 million. On a year-over-year basis, Marvell earnings rose 71% while sales climbed 11%.
It was Marvell’s fourth straight quarter of accelerating earnings growth. However, sales growth slowed in the period after three quarters of quickening growth.
For the current quarter, Marvell expects to earn an adjusted 27 cents a share on sales of $800 million. That’s based on the midpoint of its outlook. Wall Street had predicted Marvell earnings of 27 cents a share on sales of $793.3 million in the fiscal first quarter. In the year-earlier period, Marvell earnings were 18 cents a share on sales of $693.6 million.
MRVL Stock Drops In Late Trades
In after-hours trading on the stock market today, MRVL stock fell 5.2%, near 43.20. During the regular session Wednesday, MRVL stock dropped 4.8% to 45.56 amid a down day for tech stocks.
“We delivered outstanding fiscal year 2021 performance, with robust revenue growth of 10%, led by our networking business, which grew 22% driven by strong 5G and cloud product ramps,” Chief Executive Matt Murphy said in a news release.
He added, “We anticipate strong growth in the first quarter of fiscal 2022, projecting revenue to grow approximately 15% year on year at the mid-point of guidance.”
Marvell Ranks No. 12 In Fabless Chipmaker Group
Marvell makes data infrastructure chips used in cloud computing, automotive, communications and other applications. It plans to bulk up its data center and wireless communications businesses with the acquisition of Inphi (IPHI). Marvell expects its $10 billion purchase of Inphi to close in the second half of 2021.
MRVL stock ranks No. 12 out of 31 stocks in IBD’s Electronics-Semiconductor Fabless industry group, according to the IBD Stock Checkup tool.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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