GREENSBORO – Revenues and earnings soared past Wall Street estimates at Qorvo on Wednesday and its CEO says demand for its semiconductor products is climbing.
Bob Bruggeworth, president and chief executive officer of Qorvo, explained:
“In the second quarter, Qorvo outperformed our updated guidance on revenue, gross margin and EPS. Strength was diversified across customers and supported by multiyear technology upgrade cycles, including 5G and Wi-Fi 6. Customers are requiring more and better RF in highly integrated form factors to enable their next-generation products.”
Qorvo (Nasdaq: QRVO) reported fiscal second-quarter earnings of $136.9 million.
The Greensboro, North Carolina-based company said it had profit of $1.18 per share. Earnings, adjusted for one-time gains and costs, were $2.43 per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.14 per share.
The chipmaker posted revenue of $1.06 billion in the period, also beating Street forecasts. Five analysts surveyed by Zacks expected $1.01 billion.
For the current quarter ending in January, Qorvo expects its per-share earnings to be $2.65.
The company said it expects revenue in the range of $1.05 billion to $1.08 billion for the fiscal third quarter.
Qorvo shares have increased 15% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $133.68, a rise of 32% in the last 12 months.
Highlights for the quarter include:
- Expanded shipments of integrated main path solutions, including low-band, mid-/high- and ultra-high-band modules, across multiple tier-one smartphone OEMs
- Increased volume shipments of BAW-based antennaplexer solutions to multiple tier-one smartphone OEMs
- Acquired ultra-wideband (UWB) software and system solution pioneer 7Hugs Labs S.A.S. to enhance Qorvo’s capabilities in UWB system solutions and accelerate adoption across mobile, IoT and automotive ecosystems
- Signed partnership agreement with leading design services company Sigma Connectivity to develop advanced UWB solutions and assist customers in the creation of breakthrough applications
- Enjoyed broad-based content gains in Wi-Fi 6 in support of leading suppliers of smartphones, tablets, mesh networks, gateways, smart speakers and virtual reality headsets
- Awarded multiple design wins in support of 5G massive MIMO base stations and commenced shipments of GaN amplifiers for massive MIMO C-band base station deployments
- Launched high-performance BAW filters for 5G small cells and repeaters to enable 5G band 41 and Wi-Fi coexistence
- Achieved strong growth in power management products driven by solid state storage in client/enterprise computing and brushless motor control applications
- Awarded multi-year U.S. government State-of-the-Art Heterogeneous Integrated Packaging (SHIP) program, recognizing Qorvo’s leadership in advanced RF semiconductor packaging