Qorvo Shares Drop 9% After Earnings Guidance Misses Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: seekingalpha
- Guidance Miss: Qorvo's forecast for Q4 earnings ranges from $1.05 to $1.35 per share, with the midpoint falling short of Wall Street's $1.37 expectation, indicating significant market pressures.
- Sales Downgrade: The company anticipates sales between $775 million and $825 million, with the $800 million midpoint considerably below analysts' forecast of $905.1 million, reflecting signs of weakening demand.
- Quarterly Performance Review: For the period ending December 27, Qorvo reported an adjusted EPS of $2.17 and revenue of $992.96 million, which exceeded analysts' expectations of $1.86 and $985.8 million, showcasing resilience despite challenges.
- Market Environment Challenges: CEO Bruggeworth highlighted that the outlook for the upcoming quarter is impacted by seasonal declines from their largest customer, strategic resizing of the Android business, and ongoing strength in the High-Performance Analog segment, indicating multiple challenges ahead.
Analyst Views on QRVO
Wall Street analysts forecast QRVO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QRVO is 100.08 USD with a low forecast of 85.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
1 Buy
15 Hold
1 Sell
Hold
Current: 82.500
Low
85.00
Averages
100.08
High
110.00
Current: 82.500
Low
85.00
Averages
100.08
High
110.00
About QRVO
Qorvo, Inc. is a global provider of connectivity and power solutions. The Company supplies semiconductor solutions. The Company operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG) and Advanced Cellular Group (ACG). The HPA segment is a global supplier of radio frequency (RF), analog mixed signal and power management solutions. The CSG segment is a global supplier of connectivity and sensor solutions, with broad expertise spanning ultra-wideband (UWB), Matter, Bluetooth Low Energy (BLE), Zigbee, Thread, Wi-Fi, cellular solutions for the Internet of Things (IoT) and microelectromechanical system (MEMS)-based sensors. The ACG segment is a global supplier of advanced cellular solutions for smartphones, wearables, laptops, tablets and other devices. The Company serves diverse segments of global markets, including automotive, consumer, defense and aerospace, industrial and enterprise, infrastructure and mobile.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
