Why Marvell Technology Stock Is Sliding After Hours?

Marvell Technology, Inc. MRVL shares are trading lower in the after-hours session Thursday after the company reported second-quarter earnings.

What To Know: The company reported quarterly earnings of 33 cents per share, which beat the analyst consensus estimate of 32 cents, a 42.11% decrease over earnings of 57 cents per share from last year. 

The company reported quarterly sales of $1.34 billion, which beat the analyst consensus estimate of $1.33 billion, an 11.67% decrease over sales of $1.52 billion in the same period last year.

Cash flow from operations for the second quarter was $112.5 million.

Marvell issued third-quarter 2024 revenue guidance of $1.4 billion plus or minus 5%, versus the $1.39 billion estimate.

"Marvell delivered second-quarter fiscal 2024 revenue above the midpoint of guidance, and we are forecasting sequential revenue growth to accelerate in the third quarter. This growth is being driven primarily by AI and cloud infrastructure," said Matt Murphy, Marvell's Chairman and CEO.

"Demand from AI applications continues to strengthen, driving our overall revenue outlook from AI for this fiscal year even higher than previously outlined. Our strategy to focus on data infrastructure across a diverse set of end markets is serving us well despite the backdrop of a softening macroenvironment."

Related Link: Mysterious Crash Of Plane Carrying Wagner Leader Sparks Assassination Speculation

MRVL Price Action: Shares of MRVL were down 3.54% at $55.26 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by axonite from Pixabay