Marvell Technology (MRVL) reported its fiscal fourth-quarter results, which surpassed analysts' predictions; however, the company's subdued outlook triggered disappointment, causing the shares to drop in after-market trading. The semiconductor firm witnessed a 27% year-over-year surge in its revenue, which reached $1.82 billion - a figure that outperformed Visible Alpha's consensus. Our earnings reached $531.4 million (60 cents per share), which is an upturn from last year's $401.6 million (46 cents per share), exceeding forecasts. A 78% increase in data center segment revenue, reaching $1.37 billion, primarily spurred on by a demand for artificial intelligence infrastructure.
The company has forecast its fiscal first-quarter revenue at $1.875 billion, with a variance of 5%, and adjusted earnings per share within a bracket of 56 cents and 66 cents. These predictions match approximately with the analysts' consensus. However, the high expectations from Marvell's outlook played a part in its downfall. Bank of America analysts, in the lead-up to presenting the results, anticipated an AI-fuelled upside and an overwhelmingly positive forecast.
Meanwhile, Marvell's shares also experienced heightened short interest over the prior week, as reported by analysts at S3 Partners on Tuesday. Following the announcement, Marvell's shares plunged by 15% in after-hours trading on Wednesday, despite seeing an 11% increase in the last year up to Wednesday's close, after reaching a record high in January.