The stock was falling 5.37% to $22.90 in postmarket trading Thursday, after having risen 2.63% in regular hours.
Adjusted earnings per share for the second quarter of 2019 came in at 16 cents, beating Wall Street's estimates of 15 cents. Revenue was $657 million, beating analysts expectations of $650 million, and shrinking 1.2% year-over-year.
However, management guided for third quarter revenue of $660 million, plus or minus 3%, short of analyst consensus forecasts of $695 million, according to FactSet. Management also guided for adjusted EPS for the quarter of 15 cents to 19 cents, below analyst estimates for 21 cents. Management blamed the macroeconomic environment and the ongoing ban on U.S. companies doing business with Chinese telecom giant Huawei for the weaker guidance for the third quarter.
For the quarter, storage products revenue was $274.9 million, beating expectations of $265 million, while networking revenue of $329.6 million missed expectations for $337 million.
"Marvell delivered solid second quarter results with revenue above the mid-point of our guidance and we fully achieved the operating expense reductions we had outlined last year, two quarters ahead of schedule," said Matt Murphy, President and CEO of Marvell. "In our third quarter, we face a worsening macro environment along with the ongoing impact from the current restrictions on shipments to Huawei, offset by a stabilizing storage business and the earlier than expected first production shipments of our 5G solutions."
The stock is up 47% year-to-date.
Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up!