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Earnings To Watch: Qorvo Reports Q4 Results Tomorrow


Kayode Omotosho /
2022/02/01 5:56 am EST
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Communications chips maker Qorvo (NASDAQ: QRVO) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter Qorvo reported revenues of $1.25 billion, up 18.3% year on year, in line with analyst expectations. It was a solid quarter for the company, with a significant improvement in inventory levels and a significant improvement in gross margin.

Is Qorvo buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Qorvo's revenue to grow 14.3% year on year to $1.25 billion, slowing down from the 25.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $3.26 per share.

Qorvo Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing 13 upward and 6 downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.17%.

Looking at Qorvo's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Intel delivered top-line growth of 2.75% year on year, beating analyst estimates by 11.8% and Micron Technology reported revenues up 33.1% year on year, exceeding estimates by 0.13%. Intel traded down 7.04% on results, Micron Technology was up 10.4%. Read our full analysis of Intel's results here and Micron Technology's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 13.7% over the last month. Qorvo is down 14.2% during the same time, and is heading into the earnings with with analyst price target of $203.1, compared to share price of $136.72.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.