After missing revenue estimates for the first quarter, Marvell Technology Group (MRVL) shares are down. Despite this, CEO Matt Murphy remains optimistic about the company’s potential to recover in the second quarter. Yahoo Finance’s Julie Hyman and Josh Lipton analyzed the report in detail.
The company struggled due to weak client spending in the wireless carrier enterprise market. Although the second quarter revenue forecast aligned with analyst expectations, Marvell shares are trading lower by about 4.5%. The stock initially declined in after-hours trading after the report was released.
Marvell’s second quarter adjusted earnings per share forecast falls between 24 to 34 cents, close to the estimated 28 cents. Data center and market revenue rose by 87% compared to the previous year. Despite the positive growth, Marvell shares are trading lower than before this report.
Year-to-date, Marvell shares had risen by approximately 27% before this report. The CEO mentioned a ramp-up in custom AI programs and highlighted the growth in data center and market revenue. The company anticipates growth in enterprise networking and carrier infrastructure for the second half of the fiscal year, but it is unclear how much impact this will have on its stock price after the call.
