Qorvo (QRVO) To Report Earnings Tomorrow: Here Is What To Expect

Max Juang /
2023/10/31 3:01 am EDT

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

Last quarter Qorvo reported revenues of $651.2 million, down 37.1% year on year, beating analyst revenue expectations by 1.79%. It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.

Is Qorvo buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Qorvo's revenue to decline 13.5% year on year to $1 billion, a further deceleration on the 7.74% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.77 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 1.44%.

Looking at Qorvo's peers in the processors and graphics chips segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Intel's revenues decreased 7.69% year on year, beating analyst estimates by 4.12%, and SMART reported revenue decline of 27.7% year on year, missing analyst estimates by 15.6%. Intel traded up 7.2% on the results, SMART was down 23.6%.

Read our full analysis of Intel's results here and SMART's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share price declining 11.8% over the last month. Qorvo is down 8.68% during the same time, and is heading into the earnings with analyst price target of $113.6, compared to share price of $86.9.

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.

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