Adrian Johnson
TLDR:
- Marvell Technology’s full-year 2024 earnings report shows a revenue decline of 7% from the previous year.
- The company reported a net loss of US$933.4m and a loss per share of US$1.08, missing analyst expectations by 71%.
In the full-year 2024 earnings report released by Marvell Technology, the company experienced a decline in revenue by 7% from the previous year, reaching US$5.51b. However, the net loss widened significantly by 471% compared to FY 2023, amounting to US$933.4m. The loss per share also deteriorated to US$1.08 from US$0.19 in the previous year, missing analyst expectations by 71%.
The revenue breakdown for the trailing 12 months showed that the Design, Development, and Sale of Integrated Circuits segment contributed the most to revenue. However, the cost of sales, amounting to US$3.21b, accounted for 58% of total revenue, impacting earnings significantly. The company’s largest operating expense was Research & Development costs, totaling US$1.90b.
Looking ahead, Marvell Technology is forecasted to experience an average annual revenue growth of 13% in the next 3 years, slightly lower than the 16% growth forecast for the Semiconductor industry in the US. The company’s shares have seen a decline of 22% over the past week.
Investors are advised to consider Marvell Technology’s balance sheet strength along with its earnings performance. Valuation analysis is also recommended to determine if the company is potentially over or undervalued. It is crucial to conduct thorough research before making any investment decisions based on analyst forecasts and historical data.
