Qorvo (QRVO) Q4 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/05/03 7:06 am EDT
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Communications chips maker Qorvo (NASDAQ: QRVO) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Qorvo reported revenues of $1.11 billion, up 1.74% year on year, in line with analyst expectations. It was a weaker quarter for the company, with an increase in inventory levels and a slow revenue growth.

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 7.22% year on year to $1.15 billion, slowing down from the 36.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.94 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 3.02%.

Looking at Qorvo's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Qualcomm delivered top-line growth of 40.6% year on year, beating analyst estimates by 5.32% and Intel reported revenue decline of 6.7% year on year, exceeding estimates by 0.16%. Qualcomm traded up 4.3% on the results, Intel was down 4.1%. Read our full analysis of Qualcomm's results here and Intel's results here.

Tech stocks have had a rocky start in 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.24% over the last month. Qorvo is down 3.6% during the same time, and is heading into the earnings with analyst price target of $171.1, compared to share price of $119.04.

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.