Communications chips maker Qorvo (NASDAQ: QRVO) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
Qorvo beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $886.7 million, up 36.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a significant improvement in its operating margin.
Is Qorvo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Qorvo’s revenue to decline 6.9% year on year to $1.03 billion, a further deceleration from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.85 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qorvo has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.
Looking at Qorvo’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. SMART’s revenues decreased 1.7% year on year, missing analysts’ expectations by 4.3%, and Micron Technology reported revenues up 93.3%, topping estimates by 1.4%. SMART’s stock price was unchanged after the results, while Micron Technology was up 14.6%.
Read our full analysis of SMART’s results here and Micron Technology’s results here.
Investors in the semiconductors segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Qorvo is down 3.2% during the same time and is heading into earnings with an average analyst price target of $122.53 (compared to the current share price of $100).
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