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Marvell Technology Stock Tanks on Soft Outlook

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Thomas Fuller / SOPA Images / LightRocket via Getty Images

Thomas Fuller / SOPA Images / LightRocket via Getty Images

Shares of Marvell Technology (MRVL) are plunging around 20% Thursday morning, a day after the semiconductor firm reported an outlook that disappointed some investors.

Marvell reported fourth-quarter adjusted earnings per share (EPS) of $0.60 on revenue that jumped 27% year-over-year to $1.82 billion, both slightly above Visible Alpha consensus.

Although Marvell's current-quarter projections of adjusted EPS of $0.61, plus or minus $0.05, and revenue of $1.875 billion, plus or minus 5%, were mostly in line with estimates, Bank of America analysts had called for a "largely better" forecast.

After Marvell's "solid" results Wednesday, Deutsche Bank analysts affirmed their "buy" rating on the stock, writing that they "continue to see a positive risk/reward in MRVL, using the apparent 'disappointment' of tonight's report/guide as a buying opportunity."

Read the original article on Investopedia