Marvell Technology Shares Drop 7% on Soft Guidance

Marvell Technology, Inc. (NASDAQ:MRVL) shares were trading around 7% lower Friday afternoon following the company’s reported Q2 results, with revenue coming in at $1.52 billion, in line with the Street estimates. EPS came in at $0.57, better than the Street estimate of $0.56.

The company expects Q3/23 EPS to be in the range of $0.56-$0.62, compared to the Street estimate of $0.60, and revenue of $1.56 billion, compared to the Street estimate of $1.58 billion.

According to the analysts at Deutsche Bank, the moving pieces under the covers in the quarter/guide were slightly more surprising to them, with both the Data Center and Carrier businesses guided to decline quarter-over-quarter in Q3. However, the analysts mentioned that this dynamic is more reflective of supply challenges rather than weakening demand, with the company’s guidance for Q4 revenue growth to accelerate quarter-over-quarter, led by a combination of loosening supply and company-specific product cycles.