Qorvo (QRVO) Q3 Earnings Report Preview: What To Look For

Adam Hejl /
2023/01/31 4:25 am EST

Communications chips maker Qorvo (NASDAQ: QRVO) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter Qorvo reported revenues of $1.15 billion, down 7.74% year on year, beating analyst revenue expectations by 2.45%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.

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 34.7% year on year to $726.3 million, a significant deceleration on the 1.74% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 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 1.71%.

Looking at Qorvo's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Intel's revenues decreased 31.5% year on year, missing analyst estimates by 3.1% and NXP Semiconductors reported revenues up 8.98% year on year, exceeding estimates by 0.48%. Intel traded down 6.41% on the results, and NXP was down 2.04% on the results. Read our full analysis of Intel's results here and NXP Semiconductors's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 15.4% over the last month. Qorvo is up 20.3% during the same time, and is heading into the earnings with analyst price target of $99.6, compared to share price of $107.26.

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