Communications chips maker Qorvo (NASDAQ: QRVO) will be reporting earnings this Tuesday after the bell. Here’s what to expect.
Qorvo beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $869.5 million, down 7.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
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 12.3% year on year to $777.5 million, a reversal from the 36.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qorvo has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.5% on average.
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. Penguin Solutions delivered year-on-year revenue growth of 7.9%, missing analysts’ expectations by 1.4%, and Intel reported flat revenue, topping estimates by 7.8%. Penguin Solutions traded up 10.6% following the results while Intel was down 8.4%.
Read our full analysis of Penguin Solutions’s results here and Intel’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 3% on average over the last month. Qorvo’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $84.38 (compared to the current share price of $84.75).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
