Marvell Technology Group Ltd. (NASDAQ:MRVL) shares were down nearly 5% in premarket trading Friday on declining third-quarter revenue and underwhelming guidance.
The semiconductor company posted adjusted earnings of $0.41 per share, down from $0.57 a year earlier and in line with Street expectations of $0.40. Revenue fell to $1.42 billion from $1.54 billion over the same span but beat the consensus estimate of $1.4 billion.
Data center revenue dropped 11% year over year to $556 million but rose 20% sequentially.
“The diversification of our portfolio is serving us well, with strong growth from AI and cloud carrying us through a softening demand environment in other end markets,” CEO Matt Murphy said in a statement. “These dynamics are reflected in our forecast for overall revenue to be flat sequentially in the fourth quarter at the midpoint of guidance.”
Marvell issued fourth-quarter revenue guidance with a midpoint of $1.42 billion, below Street expectations of $1.46 billion. The company projected adjusted earnings of $0.46 per share, compared to expectations of $0.49 per share.
--Updates with share price--
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