Marvell Technology Q4 Earnings: Revenue Beat, EPS In Line, Weak Guidance Sends Shares Tumbling
Portfolio Pulse from Adam Eckert
Marvell Technology Inc (NASDAQ:MRVL) reported Q4 earnings with revenue of $1.427 billion, slightly above estimates, and EPS of 46 cents, meeting expectations. Despite four consecutive quarters of meeting or exceeding estimates, weak Q1 guidance below analyst expectations led to a 12% drop in after-hours trading. The company anticipates soft demand in several sectors but expects recovery in the second half of the fiscal year. Additionally, Marvell announced a $3 billion share repurchase program and an upcoming event on AI infrastructure.
March 07, 2024 | 9:21 pm
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Marvell Technology reported Q4 earnings with a slight revenue beat and in-line EPS but provided weaker than expected Q1 guidance, leading to a 12% drop in after-hours trading. The company also announced a $3 billion share repurchase program.
The immediate negative reaction in after-hours trading to the weak Q1 guidance indicates a short-term bearish outlook for MRVL. However, the announcement of a significant share repurchase program may provide some support to the stock price in the medium term.
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