Marvell Technology Inc. expects a sequential acceleration in its data-center business during the current quarter, and its shares were heading higher in Thursday’s aftermarket action despite lower-than-expected overall guidance.
The chip company logged a fiscal third-quarter net loss of $164.3 million, or 19 cents a share, whereas it recorded net income of $13.3 million, or 2 cents a share, in the year-earlier period. On an adjusted basis, Marvell
MRVL,
posted earnings per share of 41 cents, down from 57 cents a year prior, while analysts were modeling 40 cents.
Revenue fell to $1.42 billion from $1.54 billion but exceeded the FactSet consensus, which was for $1.40 billion.
The company saw data-center revenue reject 11% to $556 million, while analysts had been expecting $525 million. However, revenue for the segment was up more than 20% sequentially, and the company models more than 30% sequential growth for the end market in the fiscal fourth quarter.
Marvell’s stock was up more than 2% in Thursday’s extended session.
“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,” Chief Executive Matt Murphy said in a release. “These dynamics are reflected in our forecast for overall revenue to be flat sequentially in the fourth quarter at the midpoint of guidance.”
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For the fiscal fourth quarter, Marvell models overall revenue of $1.42 billion at the midpoint, whereas analysts were looking for $1.46 billion. The company also anticipates 46 cents in adjusted earnings per share at the midpoint, which compares with the 49 cents that analysts had been modeling.
