NEW YORK (AP) - Shares of Marvell Technology Group Ltd. took a hit in premarket trading Friday after the chip maker reported fiscal fourth-quarter results below Wall Street's expectations.
Marvell said late Thursday that it earned 33 cents per share for the three months ended Jan. 29, up from 31 cents a year earlier. But adjusted earnings of 40 cents a share fell 2 cents below analysts' expectations, according to FactSet.
The company's revenue grew 7 percent to $900.5 million, but it was below analyst estimates of $925.3 million.
Janney Capital Markets analyst Nicholas Aberle said hard disk drive and mobile and wireless demand was worse than typical for the season, driving what he called an "incremental downside." But he added that, given "several positive catalysts" across multiple markets for the company — including market share gains and new products — he would "be taking advantage of today's stock weakness to accumulate ahead of what we believe will be a solid mid-year bounce-back where numbers track higher." He rates Marvell a "Buy."
Shares of Marvell, which is based in Bermuda but operates out of Santa Clara, Calif., fell $1.16, or 6.4 percent, to $17.06 in premarket trading Friday.