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HomeBusinessMarvell Technology Shares Drop 4 percent on Weak Guidance

Marvell Technology Shares Drop 4 percent on Weak Guidance

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Marvell Technology (NASDAQ:MRVL) shares fell more than 4% on Friday after the company reported solid Q4 results, but missed Q1/24 estimates. Q4 EPS came in at $0.46, in line with the Street estimate. Revenue was $1.42 billion, slightly above the Street estimate of $1.4 billion.
For Q1/2024, the company expects EPS to be in the range of $0.24-$0.34, worse than the Street estimate of $0.41. Revenue is seen at $1.3 billion, missing the Street estimate of $1.38 billion.
Importantly, the company expects a revenue recovery to occur in the second half of the year (Storage rebound from a 50% drop in the current downturn, bolstered by company-specific cloud ramps), a theme echoed by many Data-Center exposed semi-peers, albeit with the formerly “immune” company-specific Cloud-optimized revenues likely to contribute only half of the former goal (ramp timing pushed out).

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