GREENSBORO – Qorvo (Nasdaq: QRVO) on Wednesday reported fiscal third-quarter net income of $216.3 million and its overall financials beat the Street. But investors drove down the chip maker’s stock 10% in after-hours trading anyway.
CNBC calleed Qorvo’s report “mixed.”
Both CEO Bob Bruggeworth and CFO Mark Murphy touted the company’s performance and projected growth. Yet shares declined 10% in after-hours trading to $134.
“Qorvo outperformed the midpoint of our guidance in the December quarter on revenue, gross margin and EPS [earnings per share]. Sustained year-over-year revenue growth was supported by multiyear secular growth drivers in 5G, IoT connectivity, defense and power. Qorvo is operating well and expanding the markets we serve while investing to extend product and technology leadership across our portfolio,” Bruggeworth said.
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Added Murphy: “We expect to deliver sequential growth in the March quarter on smartphone launch timing and stronger IDP volumes. At the midpoint of our March guidance, we project our full fiscal year revenue growth to exceed 15%, operating margin to expand to over 33%, and earnings per share to grow 25%.”
The Greensboro firm said it had net income of $1.95 per share. Earnings, adjusted for pretax expenses and amortization costs, came to $2.98 per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.75 per share.
The chipmaker posted revenue of $1.11 billion in the period, which met Street forecasts.
For the current quarter ending in March, Qorvo expects its per-share earnings to be $2.94.
The company said it expects revenue in the range of $1.14 billion to $1.17 billion for the fiscal fourth quarter.
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Financial highlights
As reported by Qorvo, here are quartertly highlights:
- Ramped shipments to Korea-based smartphone OEM in support of flagship and mass-market smartphone launches
- Supplied Qorvo’s first complete UWB solution in an Android® smartphone, including UWB transceiver and software stack compatible with other Android devices
- Introduced a fully integrated module combining Qorvo’s UWB chipset with Nordic®’s Bluetooth Low Energy solution to address a wide range of industrial and enterprise applications
- Expanded customer sampling of highly integrated main path and secondary transmit solutions for Android 5G smartphones
Secured new Wi-Fi 7 chip-on-board reference design engagements for mobile applications and began customer sampling of Wi-Fi 7 FEMs - Ramped Wi-Fi 6E FEMs enabling Wi-Fi mesh networks for home and enterprise markets and released 5 GHz iFEMs featuring BAW filtering for tri-band Wi-Fi mesh networks
- Selected by base station OEM to supply 3.4-3.8 GHz 8W GaN power amplifier modules for mMIMO 5G deployments
- Selected to provide cellular FEM for V2X connectivity for leading Europe-based automotive OEM
- Secured design wins to supply on-board chargers and DC-DC converters in support of leading automotive OEMs in Europe and Asia
- Signed channel partnership agreement for Qorvo Omnia™ diagnostic test platform distribution and submitted a CLIA waiver application to the FDA to expand deployment in point-of-care settings
You can read the full financial report online:
The Associated Press contributed to this report.
