Marvell Technology Inc (MRVL)

Shares of Marvel Technology Inc. (MRVL) dropped by 5.26% from $55.73 to $52.80 in the trading on Friday, December 1, 2023. The reason why MRVL is down today is due to discrepancy between performance and guidance:

• Third-Quarter Results: Marvell Technology reported its third-quarter fiscal year 2024 results, which exceeded the Zacks Consensus Estimate. However, certain aspects of the report, particularly the guidance for the fourth quarter, disappointed investors.
• Year-over-Year Decline: Despite the positive earnings and revenue surprises, both non-GAAP earnings and revenues fell compared to the same quarter in the previous year. Non-GAAP earnings per share and revenues declined by 28.1% and 7.7%, respectively, from the year-ago quarter.
• Guidance: Marvell's fourth-quarter guidance fell short of expectations. The company expects fourth-quarter revenues of $1.42 billion (+/- 5%), which is slightly lower than the Zacks Consensus Estimate of $1.46 billion. The non-GAAP gross margin is estimated to be around 63.5%-64.5%, while non-GAAP operating expenses are expected to be approximately $430 million. The company projects non-GAAP earnings per share for the fourth quarter to be approximately 46 cents (+/- 5 cents), while the consensus estimate is 49 cents per share. Despite the better-than-expected third-quarter results, the outlook for the fourth quarter led to a decline in MRVL stock during extended trading, with shares falling 4.6%. This discrepancy between performance and guidance contributed to the drop in Marvell Technology's stock price on December 1, 2023.

Marvell stocks dropped 6.62% as it reported after Nvidia's exceptional data-center sales. Marvell's earnings slightly beat expectations, but a 29% data-center sales decline to $459.8 million contrasted sharply with Nvidia's impressive results, leaving investors wanting stronger numbers.

https://headtopics.com/us/marvell-s-stock-sells-off-after-company-couldn-t-meet-nvidia-s-high-bar-on-ai-42870961