MRVL Stock Slips After-Hours Despite Raised Multi-Year Outlook — Investors Weigh Thin Q2 Beat, Lower Q3 Margin Outlook

• Q2 revenue hit $2.739 billion, up 37% from a year earlier and above Wall Street estimate of $2.71 billion.
• “AI-related bookings remain exceptionally robust,” Murphy said. 
• For Q3, adjusted gross margin is expected to be 57.5%-58.5%, down from 58.9% in Q2.

Shares of Marvell Technology (MRVL) fell about 2% in after-hours trading on Thursday after a thin second-quarter beat and a guided dip in third-quarter gross margins, even as the company raised its multi-year sales outlook again.

Q2 Numbers

Revenue hit $2.739 billion in the fiscal second quarter, up 37% from a year earlier and above a Wall Street estimate of $2.71 billion. Adjusted earnings were $0.94 a share, versus $0.67 a year ago, but only marginally above a Wall Street estimate of $0.93.

Data center sales were $2.171 billion, up 46% year over year and 18% from the prior quarter. That business now accounts for 79% of revenue. Communications and other sales rose 10% year over year to $568 million.

Bookings ‘Exceptionally Robust,’ Says Murphy

Chairman and CEO Matt Murphy said growth should speed up through the rest of fiscal 2027. “AI-related bookings remain exceptionally robust,” he said. The company is again raising its revenue outlook for both fiscal 2027 and fiscal 2028, he said, without divulging the fresh numbers. Previously, the company guided to revenue of nearly $11.5 billion for FY27 and $16.5 billion for FY28.

He pointed to broad demand across the data-center lineup, including connectivity, and a “significant acceleration” in custom chips starting in the second half of the year.

Looking Ahead

For the third quarter, Marvell guided revenue to $3.15 billion, plus or minus 5%, as compared to an estimated $3.04 billion. That implies a sharp sequential step-up.

Adjusted earnings are seen at $1.10 a share, plus or minus 5 cents, compared to an analyst estimate of $1.08. Adjusted gross margin is expected at 57.5% to 58.5%, down from 58.9% in Q2.

How Did MRVL Retail Traders React?

On Stocktwits, retail sentiment around MRVL stock jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high.’

MRVL stock has gained 184% year-to-date. 

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