Why Marvell Technology Stock Gained After-Hours

Marvell Technology, Inc. MRVL shares are trading higher in Thursday's post-market session after the company reported third-quarter earnings results. Here's what you need to know.

What To Know: Marvell Technology reported quarterly adjusted earnings of 41 cents per share, beating the analyst consensus estimate of 40 cents.

Revenue clocked in at $1.419 billion, beating the Street's $1.4 billion estimate, representing a year-over-year decrease of 8%.

Also, the company posted a Gross Margin of 38.9% for the quarter and had cash and cash equivalents of $725.6 million at the end of the period.

Marvell Technology's outlook for the fourth quarter includes Net revenue of $1.420 billion +/- 5% and non-GAAP diluted income per share of 46 cents +/- five cents per share.

"Marvell delivered third quarter fiscal 2024 revenue of $1.419 billion, growing 6% sequentially, above the midpoint of guidance. Revenue from our datacenter end market grew over 20% sequentially in the third quarter, and we expect growth of over 30% sequentially in our fourth quarter," said Matt Murphy, Chairman and CEO of Marvell.

"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. 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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MRVL Price Action: Shares of MRVL were up 1.47% at $56.55 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Michael Schwarzenberger from Pixabay