Qorvo (QRVO) Reports Q2: Everything You Need To Know Ahead Of Earnings
Communications chips maker Qorvo (NASDAQ: QRVO) will be announcing earnings results this Tuesday afternoon. Here’s what investors should know.
Qorvo beat analysts’ revenue expectations last quarter, reporting revenues of $808.3 million, down 7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.
Is Qorvo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Qorvo’s revenue to decline 9.7% year on year, a further deceleration from the 7.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Qorvo has a history of exceeding Wall Street’s expectations.
Looking at Qorvo’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Penguin Solutions reported revenues up 47.6%, topping estimates by 17.5%. Intel traded down 12.2% following the results while Penguin Solutions was up 25.1%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Unfortunately, semiconductors stocks have struggled in this environment as share prices are down 15.4% on average over the last month. Qorvo is down 7.9% during the same time and is heading into earnings with an average analyst price target of $91.46 (compared to the current share price of $86.28).
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