Marvell Reports Worse-Than-Expected Q1 Results: Details – Marvell Tech (NASDAQ:MRVL)

Marvell Technology, Inc. MRVL announced its first quarter financial results after the bell on Thursday. Here are the highlights from the report.

Details: Marvell reported quarterly earnings of 24 cents per share, missing the analyst consensus of 25 cents and representing a decline of 22.58% from earnings of $0.31 per share in the same period last year.

Quarterly sales were $1.16 billion, topping analyst consensus of $1.18 billion and representing a 12.18% decline from year-over-year sales of $1.32 billion.

Marvell also reported non-GAAP gross margin of 62.4% for the quarter.

“Marvell achieved first-quarter fiscal 2025 revenue of $1.161 billion, above average estimates, driven by stronger-than-forecast demand for artificial intelligence. Our data center revenue increased 87% year-over-year as growth began in our custom AI programs, complementing our significant electro-optics revenue base,” he said Matt Murphypresident and CEO of Marvell.

Outlook: Marvell Technology forecast second-quarter earnings of 29 cents, plus or minus 5 cents per share, compared with estimates of 29 cents per share. The company expects revenue of $1.25 billion, plus or minus 5%, compared to the consensus estimate of $1.24 billion.

“For the second quarter of fiscal 2025, we project 8% sequential revenue growth at the midpoint, driven by growth in custom AI silicon. We see a favorable backdrop for the second half of this fiscal year, driven by continued data center expansion and the beginning of recovery in enterprise networks and carrier infrastructure,” Murphy said.

MRVL price action: Marvell Technology shares were down 1.76% in the after-hours at $75.50 at the time of reporting on Thursday, according to Benzinga Pro.

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