Qorvo’s Financial Outlook: Earnings Report and Market Reactions
Qorvo, Inc. (QRVO), based in Greensboro, North Carolina, specializes in core technologies and radio frequency (RF) solutions for sectors such as mobile, infrastructure, aerospace, and defense. With a market capitalization of $6.8 billion, the company operates through three main segments: High-Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). Investors will be keeping a close watch as it prepares to release its Q3 earnings on Wednesday, Jan. 29, after market hours.
Analysts Predict Decline in Profits
Before the earnings report, analysts project Qorvo’s earnings to drop to $0.87 per share. This represents a steep decline of 53.9% compared to last year, when the company reported $1.89 per share. Notably, Qorvo has beaten Wall Street’s earnings expectations for the last four quarters.
Future Projections: Fiscal Challenges Ahead
Looking forward to fiscal 2025, an adjusted earnings-per-share (EPS) of $3.37 is expected, down 32.3% from $4.98 in fiscal 2024. However, there is optimism as fiscal 2026 could see an adjusted EPS rebound of 31.2%, reaching $4.42.
Stock Performance and Underperformance
Over the past year, Qorvo’s stock has fallen by 11.6%. This decline contrasts sharply with the S&P 500 Index, which has gained 28.6%, and the Technology Select Sector SPDR Fund, with a 27.1% increase during the same timeframe.
Challenges from Market Trends
The company’s difficulties can largely be traced to fierce competition and a drop in demand within the smartphone market. Consumers are increasingly opting for lower-priced 5G smartphones, which has pressured Qorvo’s profit margins.
Market Response to Recent Earnings
After its Q3 earnings announcement on Oct. 29, QRVO’s shares dropped 27.3%. Despite reporting $1 billion in revenue—a 5.2% decrease year-over-year—and an adjusted EPS of $1.88 (down 21.3%), both figures exceeded Wall Street’s estimates. However, the company’s decision to cut its revenue and earnings forecast for the latter half of 2025 led to a decline in investor confidence.
Analyst Recommendations
Currently, the consensus on QRVO stock leans toward caution, with a general “Hold” rating. Among the 23 analysts who cover Qorvo, two suggest a “Strong Buy,” one recommends a “Moderate Buy,” 17 advise a “Hold,” one suggests a “Moderate Sell,” and two opt for a “Strong Sell.”
The average price target for QRVO stock stands at $91.84, indicating a potential upside of 24.7% from where the stock is currently trading.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
