Shares of Marvell Technology (NASDAQ:MRVL) tanked more than 7% during extended trading hours on Thursday after the infrastructure semiconductor solutions provider posted lower-than-expected third-quarter results. The company also provided a weak Q4 outlook as its customers continue to adjust inventories to cope with a “changing demand environment.”
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Marvell reported adjusted EPS of $0.57 per share, up 32.6% year-over-year but below the analysts’ expectations of $0.59 per share.
Further, revenue jumped 26.9% year-over-year to $1.54 billion, missing the consensus estimate of $1.56 billion. The top line benefitted from strong performance in the company’s cloud, wireless, and automotive businesses.
For the upcoming fourth quarter, Marvell expects revenue to be nearly $1.4 billion with adjusted EPS in the range of $0.41 to $0.51.
Should You Buy MRVL Stock?
Marvell commands a Strong Buy consensus rating based on 13 Buy and one Hold recommendations. The stock average price target of $63.93 implies 40.8% upside potential.
Hedge funds also have a very positive stance on Marvell stock. Our data is based on information from 16 hedge fund managers, including Ray Dalio‘s Bridgewater Associates, who have bulked up holdings in the stock.
Overall, MRVL sports a “Perfect 10” Smart Score, implying it has the potential to beat the broader market averages.
