Communications chips maker Qorvo (NASDAQ: QRVO) will be reporting earnings tomorrow after the bell. Here's what to expect.
Last quarter Qorvo reported revenues of $1.16 billion, up 8.7% year on year, beating analyst revenue expectations by 1.38%. It was a mixed quarter for the company, with a beat on the bottom line but an underwhelming revenue guidance for the next quarter.
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This quarter analysts are expecting Qorvo's revenue to decline 7.36% year on year to $1.02 billion, a further deceleration on the 41% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.12 per share.
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 2.89%.
Looking at Qorvo's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Intel's revenues decreased 21.9% year on year, missing analyst estimates by 14.5% and Qualcomm reported revenues up 35.6% year on year, exceeding estimates by 0.76%. Intel traded down 8.51% on the results, and Qualcomm was down 2.2%. Read our full analysis of Intel's results here and Qualcomm's results here.
There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 19.6% over the last month. Qorvo is up 6.86% during the same time, and is heading into the earnings with analyst price target of $129.4, compared to share price of $102.85.
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The author has no position in any of the stocks mentioned.