Shares of Marvell Technology Group (NASDAQ: MRVL) declined during after-market hours on Tuesday, after the semiconductor firm reported a slight revenue miss in Q3, besides weaker-than-expected Q4 earnings outlook.
Revenues for the third quarter declined 22% to $662 million, which fell shy of the street target of $664.5 million. Net income halved to 17 cents per share, which was in line with what the street had expected.
For the final quarter of the fiscal year, Marvell expects revenue of approximately $750 million. Adjusted net income for this period is predicted in the range of 15-19 cents, whereas analysts were expecting around 21 cents per share.
Marvell CEO Matt Murphy said the company ramped its first 5G product shipments in volume, ahead of the plan laid out earlier this year.
“We also recently completed the strategic acquisitions of Aquantia, a pioneer in multi-gig ethernet, and Avera, a leader in custom ASICs. These acquisitions broaden our technology portfolio for infrastructure customers and expand our addressable market by approximately $4 billion,” he added.
MRVL stock fell 1.5% immediately following the announcement. It has been a pretty good year so far for the semiconductor firm, with the stock gaining almost 51%.
Marvell is pinning its hopes on the ramp-up of 5G technology from its clients. However, 5G-related deployment benefits would be accretive to the top and bottom line either in the Q4 period or in the next fiscal year.