Marvell Technology misses first-quarter revenue estimates

By Thomson Reuters May 30, 2024 | 3:17 PM

(Reuters) -Chipmaker Marvell Technology missed Wall Street expectations for first-quarter revenue on Thursday, hurt by weak client spending in its wireless carrier and enterprise markets.

The company reported revenue of $1.16 billion, compared with estimates of $1.17 billion, according to LSEG data.

Shares of the Santa Clara, California-based company fell 5% in extended trading.

Marvell’s results signal that the company continues to grapple with weaker demand in its consumer markets as well as a cut back on IT spend by its enterprise clients due to signs of a soft economy.

“We see a favorable setup for the second half of this fiscal year, driven by continued growth in data center and the beginning of a recovery in enterprise networking and carrier infrastructure,” Marvell CEO Matt Murphy said.

The company forecast second-quarter revenue in line with analysts’ estimates. It also sees adjusted earnings per share of 29 cents, plus or minus 5 cents, compared with estimates of 30 cents.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)