06:38 AM EDT, 08/29/2025 (MT Newswires) -- Marvell Technology ( MRVL ) shares dropped early Friday as the semiconductor solutions provider issued a fiscal third-quarter revenue outlook below market estimates at the midpoint and reported results for the previous three-month period in line with expectations.

The company anticipates revenue to be at $2.06 billion, plus or minus 5%, for the ongoing quarter, it said late Thursday. The current consensus on FactSet is for revenue of $2.09 billion. Adjusted earnings are pegged at $0.74 per share, plus or minus $0.05, while the Street is looking for $0.73.

The stock tumbled 13% in the most recent premarket activity.

The guidance includes mid-single-digit million-dollar revenue contribution from the company's automotive ethernet business before its divestiture in August, Chief Financial Officer Willem Meintjes said during an earnings call, according to a FactSet transcript. The business would have added roughly $60 million to the firm's outlook if it had operated it for the full quarter, Meintjes said.

"We expect revenue from our electro-optics products to grow double-digits sequentially on a percentage basis as we continue to benefit from our market-leading position in (artificial intelligence) interconnect," Chief Executive Matt Murphy said on the call.

The firm's custom business "remains on track" to grow in the second half, but that growth is projected to be "nonlinear" with the fourth quarter "substantially stronger than the third," Murphy said. "As a result, we expect overall data center revenue in the third quarter to be flat sequentially, with electro-optics strength offset by lower custom revenue," the CEO added.

For the three months through Aug. 2, Marvell's ( MRVL ) adjusted EPS advanced to $0.67 from $0.30 the year before, meeting the average analyst estimate on FactSet. Revenue jumped 58% year over year to $2.01 billion, largely in line with the market view.

Revenue from the data center segment surged 69% to $1.49 billion, buoyed by robust AI demand, Murphy said on the call. Automotive and industrial revenue came in at $76 million, compared with $76.2 million in the prior-year quarter.

Sales in the carrier infrastructure division soared 71% year over year to $130.1 million, while enterprise networking inclined to $193.6 million from $151 million. Consumer revenue climbed by 30% to $115.9 million.