Qorvo Shares Drop After Disappointing Earnings Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23h ago
0mins
Source: Benzinga
- Disappointing Earnings: Qorvo reported third-quarter financial results with fourth-quarter revenue guidance projected between $775 million and $825 million, significantly below the market estimate of $904.59 million, indicating sales pressure on the company.
- Lowered Earnings Expectations: The company anticipates adjusted earnings per share in the range of $1.05 to $1.35 for the fourth quarter, compared to the market expectation of $1.37, reflecting potential declines in profitability.
- Significant Stock Reaction: In pre-market trading, Qorvo shares fell 10.5% to $74.11, as investor concerns over the financial outlook weakened market confidence.
- Market Trend Divergence: While Nasdaq 100 futures rose over 200 points, Qorvo's negative earnings report impacted its stock price, highlighting a divergence between individual stock performance and overall market trends.
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Analyst Views on ALT
Wall Street analysts forecast ALT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALT is 13.00 USD with a low forecast of 12.00 USD and a high forecast of 14.00 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.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 6.180
Low
12.00
Averages
13.00
High
14.00
Current: 6.180
Low
12.00
Averages
13.00
High
14.00
About ALT
Altimmune, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing next-generation peptide-based therapeutics. It is developing pemvidutide, a GLP-1/glucagon dual receptor agonist for the treatment of obesity, metabolic dysfunction-associated steatohepatitis (MASH) and other indications. Activation of the GLP-1 and glucagon receptors is believed to mimic the complementary effects of diet and exercise on weight loss, with GLP-1 suppressing appetite and glucagon increasing energy expenditure. Glucagon is also recognized as having direct effects on hepatic fat metabolism, to rapid reductions in levels of liver fat and serum lipids. The Company has completed the MOMENTUM Phase II obesity trial and is being studied in the IMPACT Phase IIb MASH trial. The Company also develops and commercializes surfactant-functionalized (EuPort domain) incretin-based peptide therapeutics, including (GLP-1-glucagon)/oxyntomodulin, and variants.
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.
Altimmune Raises $75 Million to Fund MASH Trial Preparations
- Funding Plan: Altimmune announced a direct offering to raise $75 million, with proceeds earmarked for preparations for its upcoming Phase 3 trial in metabolic dysfunction-associated steatohepatitis (MASH) and general corporate purposes, reflecting strong confidence in its future development.
- FDA Breakthrough Therapy Designation: Earlier in January, Altimmune received Breakthrough Therapy Designation from the FDA for pemvidutide, a development that not only enhances the company's competitive position in the MASH space but may also expedite the product's market entry.
- Stock Performance: Altimmune's shares rose nearly 3% in after-hours trading on Tuesday and are on track for a sixth consecutive day of gains, with a more than 71% increase in January, indicating strong market optimism regarding its future prospects.
- Analyst Rating: Barclays initiated coverage of Altimmune with an 'Overweight' rating and a $20 price target on Tuesday, suggesting a positive outlook for biotech stocks in 2026 and indicating that Altimmune remains undervalued within the industry.
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Altimmune Announces $75 Million Stock Offering Amid Market Volatility
- Stock Offering Impact: Altimmune's announcement of a direct offering of 17,045,454 shares at approximately $4.40 each is expected to generate about $75 million in gross proceeds, yet this has led to a 17.15% drop in stock price, indicating market concerns over its funding strategy.
- Clear Use of Funds: The proceeds from this offering will be allocated to preparations for the upcoming Phase 3 trial for MASH (metabolic dysfunction-associated steatohepatitis) and general working capital, highlighting the company's commitment to advancing its drug development.
- Market Performance Analysis: Despite a 26.33% decline in share price over the past year, Altimmune's stock remains above its 20-day and 100-day simple moving averages, suggesting short-term strength; however, the RSI indicates overbought conditions, signaling potential correction risks ahead.
- Product Development Outlook: Altimmune is developing pemvidutide as a potential treatment for obesity and metabolic-associated steatohepatitis, and the success of this funding will significantly impact its future market performance and growth trajectory.
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