Chip maker Marvell technology (Morley) late Thursday rose above Wall Street’s targets for the fiscal second quarter and provided a consistent forecast for the current period. MRVL stock is down in extended trade.
The Santa Clara, California-based company earned 33 cents adjusted per share on sales of $1.34 billion for the quarter ended July 29. Analysts polled by FactSet had forecast Marvell earnings of 32 cents per share on sales of $1.33 billion. However, year over year, Marvel’s profits fell 42% while sales shrank 12%.
Marvell’s profits have now fallen for three straight quarters while sales have fallen for the last two quarters.
For the current quarter, Marvell expected adjusted earnings of 40 cents per share on sales of $1.4 billion. Analysts called earnings of 40 cents per share on sales of $1.39 billion in the fiscal third quarter. In the same period last year, Marvell earned 57 cents a share on sales of $1.54 billion.
MRVL shares drop after the report
In after-hours trading in the stock market today, MRVL stock fell by 5% to 54.45. During the regular session on Thursday, MRVL dropped 6.9% to close at 57.29 amid a bad day for semiconductor stocks.
Prior to the earnings report, MRVL stock had been consolidating for the past 13 weeks at a buy point of 67.99, according to IBD MarketSmith Charts.
Marvell manufactures networking and data storage chips used in cloud computing, automotive, telecom, and other applications.
in New releaseCEO Matt Murphy said the company’s revenue picture is improving thanks to demand for artificial intelligence and cloud infrastructure.
“Demand from AI applications continues to strengthen, pushing our overall AI revenue forecast for this fiscal year higher than previously identified,” Murphy said. “Our strategy of focusing on data infrastructure across a variety of end markets serves us well despite the deteriorating macro environment.”
Follow Patrick Seitz on Twitter at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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