© Reuters. Marvell Technology stock falls 3% despite Q2 beat
Marvell Technology (NASDAQ:) shares fell more than 3.3% in pre-open Friday despite the company reporting better-than-expected Q2 earnings and in-line guidance. The stock lost nearly 7% on Thursday.
Q2 EPS came in at $0.33, compared to the consensus estimate of $0.32. fell 12% year-over-year to $1.34 billion, slightly above the consensus estimate of $1.33B.
“Marvell delivered second quarter fiscal 2024 revenue above the midpoint of guidance, and we are forecasting sequential revenue growth to accelerate in the third quarter. This growth is being driven primarily by AI and cloud infrastructure,” said CEO Matt Murphy.
For Q3/24, the company expects EPS of $0.40 at the mid-point, in line with the expectations, and revenue of $1.4B at the mid-point, compared to the consensus estimate of $1.39B.
Goldman Sachs analysts remain bullish on the stock.
“We maintain our Buy rating as we expect robust revenue growth — supported particularly by optical PAM4 DSPs, Data Center Interconnects (DCI) and custom ASICs — coupled with improving gross margins and disciplined opex to drive an acceleration in earnings growth in CY2024,” they said.
BMO analysts said the results were pretty much as expected.
“While the AI-centric opportunity appears to be accelerating, other parts of the business, such as storage, are taking longer to emerge from the slump, albeit are clearly past the bottom, in the case of storage. Our estimates do not change appreciably. We continue to rate shares of MRVL Outperform,” they told clients in a note.
(Additional reporting by Senad Karaahmetovic)
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