Qorvo Inc (NASDAQ:QRVO), a leading provider of core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications, today announced it expects revenue and earnings for its fiscal 2016 third quarter will be lower than it previously estimated on November 5, 2015.
Qorvo currently expects its December quarterly revenue will be approximately $620 million, versus its original guidance of$720-$730 million provided November 5, 2015 in its second quarter earnings report. The revenue decline is the result of weaker than forecasted customer demand in the Company’s Mobile Products segment. Operating expenses are expected to decline sequentially, reflecting a significant reduction in variable compensation expense. During the quarter, Qorvorepurchased approximately 4.6 million shares of common stock at a total cost of $250 million. Qorvo has $750 millionremaining in its share repurchase program, and Qorvo’s cash balance at the end of the period was over $1 billion.
For the March 2016 quarter, Qorvo currently expects quarterly revenue to be approximately flat sequentially. For calendar 2016, Qorvo currently expects above-market revenue growth, based upon customer forecasts and existing customer design wins at Qorvo’s largest customers.
These preliminary results are subject to revision due to the completion of the Company’s financial closing procedures, final adjustments and other developments that may arise between the date of this press release and the date Qorvo announces fiscal 2016 third quarter results.
Qorvo currently expects to release fiscal 2016 third quarter results following the close of regular trading on February 4, 2016. The February 4, 2016, news release will be followed by a conference call available to all interested parties at 5:00 p.m. ET. (Original Source)
Shares of Qorvo are down 10.39% to $40.90 in after-hours trading. QRVO has a 1-year high of $88.35 and a 1-year low of $42.24. The stock’s 50-day moving average is $54.45 and its 200-day moving average is $56.98.
On the ratings front, Qorvo has been the subject of a number of recent research reports. In a report issued on December 17, Needham analyst Quinn Bolton reiterated a Buy rating on QRVO, with a price target of $64, which implies an upside of 43.8% from current levels. Separately, on December 10, Brean Capital’s Mike Burton reiterated a Buy rating on the stock and has a price target of $70.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Quinn Bolton and Mike Burton have a total average return of 16.3% and 7.7% respectively. Bolton has a success rate of 56.9% and is ranked #79 out of 3630 analysts, while Burton has a success rate of 51.0% and is ranked #423.
The street is mostly Bullish on QRVO stock. Out of 7 analysts who cover the stock, 5 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $71.17, which implies an upside of 59.9% from current levels.
Qorvo Inc is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.