Qorvo Earnings: What To Look For From QRVO

Adam Hejl /
2022/11/01 3:56 am EDT

Communications chips maker Qorvo (NASDAQ: QRVO) will be reporting results tomorrow after market close. Here's what to expect.

Last quarter Qorvo reported revenues of $1.03 billion, down 6.75% year on year, in line with analyst expectations. Despite the stock rising on the results, it was a weaker quarter for the company, with declining revenue and 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 decline 9.95% year on year to $1.13 billion, a deceleration on the 18.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.54 per share.

Qorvo Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 1.99%.

Looking at Qorvo's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Allegro MicroSystems delivered top-line growth of 22.7% year on year, beating analyst estimates by 5.61% and Intel reported revenue decline of 20% year on year, exceeding estimates by 0.24%. Allegro MicroSystems traded up 5.69% on the results, Intel was up 1.41%. Read our full analysis of Allegro MicroSystems's results here and Intel's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.97% over the last month. Qorvo is up 6.77% during the same time, and is heading into the earnings with analyst price target of $107.80, compared to share price of $87.90.

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