Marvell Technology stock falls on lowered outlook
Marvell Technology Group Ltd. shares fell in the extended session Wednesday after the chip maker reduced its outlook for the quarter on weaker-than-expected storage controller sales. Marvell shares dropped 4.4% after hours, following a 2% gain to close the regular session at $19.04. The company said it sees fourth-quarter revenue of $735 million to $745 million, below its previous range of $790 million to $830 million. Analysts surveyed by FactSet had forecast revenue of $810.4 million. "The majority of Marvell's fourth-quarter revenue shortfall was due to a weaker than expected storage controller business," the company said in a statement. "Marvell believes that demand for its products was impacted primarily by macroeconomic uncertainty, reduction in cloud capital spending and PC CPU shortages." Marvell, which is scheduled to report results on March 7, said it expects weakness to continue into the fiscal first quarter, where analysts are looking for revenue of $795 million. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.