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Qorvo Set to Report Q2 Results: Will Revenue Decline Impact Earnings?
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Qorvo, Inc. (QRVO - Free Report) is set to report second-quarter fiscal 2025 results on Oct. 29, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 22.54%. It pulled off a trailing four-quarter earnings surprise of 24.93% on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The leading provider of radio frequency solutions is expected to have witnessed revenue decline owing to weakness in the Advance Cellular Group (ACG) and High Performance Analog (HPA) Group.
Factors at Play
During the quarter, Qorvo unveiled QPA3390, a cutting-edge 24V power doubler amplifier for DOCSIS 4.0 broadband and cable TV (CATV). The solution set a new standard in DOCSIS 4.0 amplifier technology with its low power consumption, compact design, cost efficiency, and high performance. This is likely to have strengthened QRVO’s position in the CATV amplifier market and supported the top line during the quarter.
In the quarter under review, Qorvo introduced QPG6200L, an advanced system-on-chip solution, designed to deliver uninterrupted and consistent connectivity for smart home devices. The solution ensures smooth compatibility across multiple wireless standards by offering greater radio frequency performance and reliability for a vast array of IoT devices. This has significantly boosted QRVO’s prospect in the global smart home device market.
However, Qorvo operates in a competitive landscape that is becoming more complex with low barriers to entry. Stiff competition affects the profitability of the company. Customer concentration risk remains a major concern. Despite easing of channel inventory, management expects persistence of weakness in end markets.
Per the Zacks Consensus Estimate, net sales in the HPA segment are expected to be $131.27 million in the second quarter of fiscal 2025, implying a decline from $149.80 million in the year-earlier quarter. Revenues from ACG are projected at $776.60 million, suggesting a decline from $850.07 million reported in the year-ago quarter. Connectivity and Sensors Group is expected to generate $118.91 million in revenues, indicating an improvement from $103.62 million in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.03 billion, indicating a 6.88% year-over-year decline. The consensus mark for earnings is pegged at $1.85 per share. It reported earnings of $2.39 per share in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Qorvo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.85. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Earnings ESP for Qualcomm Technologies, Inc. (QCOM - Free Report) is +0.48% and it carries a Zacks Rank of 2. The company is scheduled to report its quarterly numbers on Nov. 6.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.96% and it carries a Zacks Rank of 2. The company is scheduled to report its quarterly numbers on Nov. 7.
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Qorvo Set to Report Q2 Results: Will Revenue Decline Impact Earnings?
Qorvo, Inc. (QRVO - Free Report) is set to report second-quarter fiscal 2025 results on Oct. 29, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 22.54%. It pulled off a trailing four-quarter earnings surprise of 24.93% on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The leading provider of radio frequency solutions is expected to have witnessed revenue decline owing to weakness in the Advance Cellular Group (ACG) and High Performance Analog (HPA) Group.
Factors at Play
During the quarter, Qorvo unveiled QPA3390, a cutting-edge 24V power doubler amplifier for DOCSIS 4.0 broadband and cable TV (CATV). The solution set a new standard in DOCSIS 4.0 amplifier technology with its low power consumption, compact design, cost efficiency, and high performance. This is likely to have strengthened QRVO’s position in the CATV amplifier market and supported the top line during the quarter.
In the quarter under review, Qorvo introduced QPG6200L, an advanced system-on-chip solution, designed to deliver uninterrupted and consistent connectivity for smart home devices. The solution ensures smooth compatibility across multiple wireless standards by offering greater radio frequency performance and reliability for a vast array of IoT devices. This has significantly boosted QRVO’s prospect in the global smart home device market.
However, Qorvo operates in a competitive landscape that is becoming more complex with low barriers to entry. Stiff competition affects the profitability of the company. Customer concentration risk remains a major concern. Despite easing of channel inventory, management expects persistence of weakness in end markets.
Per the Zacks Consensus Estimate, net sales in the HPA segment are expected to be $131.27 million in the second quarter of fiscal 2025, implying a decline from $149.80 million in the year-earlier quarter. Revenues from ACG are projected at $776.60 million, suggesting a decline from $850.07 million reported in the year-ago quarter. Connectivity and Sensors Group is expected to generate $118.91 million in revenues, indicating an improvement from $103.62 million in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.03 billion, indicating a 6.88% year-over-year decline. The consensus mark for earnings is pegged at $1.85 per share. It reported earnings of $2.39 per share in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Qorvo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.85. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. price-eps-surprise | Qorvo, Inc. Quote
Zacks Rank: Qorvo currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:
The Earnings ESP for PayPal Holdings, Inc. (PYPL - Free Report) is +1.92% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct. 29. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Qualcomm Technologies, Inc. (QCOM - Free Report) is +0.48% and it carries a Zacks Rank of 2. The company is scheduled to report its quarterly numbers on Nov. 6.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.96% and it carries a Zacks Rank of 2. The company is scheduled to report its quarterly numbers on Nov. 7.