Communications chips maker Qorvo (NASDAQ: QRVO) will be announcing earnings results tomorrow afternoon. Here’s what to look for.
Qorvo beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.05 billion, down 5.2% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Is Qorvo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Qorvo’s revenue to decline 15.2% year on year to $910.8 million, a reversal from the 44.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qorvo has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.8% on average.
Looking at Qorvo’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Seagate Technology delivered year-on-year revenue growth of 49.5%, meeting analysts’ expectations, and Texas Instruments reported a revenue decline of 1.7%, topping estimates by 3.5%. Seagate Technology traded up 6.8% following the results while Texas Instruments was down 7.5%.
Read our full analysis of Seagate Technology’s results here and Texas Instruments’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 3.5% on average over the last month. Qorvo is up 27.6% during the same time and is heading into earnings with an average analyst price target of $92.74 (compared to the current share price of $85.56).
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