Qorvo Inc (NASDAQ:QRVO), a leading provider of core technologies and RF solutions for mobile, infrastructure and defense applications, today announced financial results for the Company’s fiscal 2016 fourth quarter, ended April 2, 2016.
On a GAAP basis, March quarterly revenue was $608.1 million, gross margin was 41.8%, operating income was $8.5 million, and net loss was $24.2 million, or a loss of $0.18 per share based on 132.7 million shares outstanding.
On a non-GAAP basis, March quarterly revenue declined sequentially 2% to $607.1 million, and gross margin increased 210 basis points sequentially to 50.0%. Operating expenses were $142.9 million, reflecting reduced variable compensation expense. Operating income was $160.6 million, or 26.4% of sales, and net income was $142.6 million, or $1.04 per diluted share based on 137.5 million shares outstanding. Cash flow from operations was $160.5 million, with free cash flow of$76.1 million.
Qorvo currently believes the demand environment in its end markets supports the following non-GAAP expectations for theJune 2016 quarter:
- Quarterly revenue of approximately $650 million
- Gross margin of approximately 50%
- Net interest expense of approximately $15 million
- A tax rate of approximately 10%
- Diluted EPS of approximately $1.05, based on approximately 133 million shares outstanding
Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.
Comments from Management
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “During the March quarter, Qorvo enjoyed strong customer demand for our highly integrated solutions, led by products incorporating our premium filters. We expect these highly integrated solutions will continue to drive our growth.
“Across all of Qorvo’s markets, it’s increasingly clear that our industry-leading portfolio of RF products and technologies represents a significant competitive advantage. We are offering customers a combination of performance and integration that’s not been available previously, putting us in a favorable position to gain content and outpace our markets.”
Steve Buhaly, chief financial officer of Qorvo, said, “Qorvo’s strong financial performance affords us multiple opportunities to invest our cash. We acquired GreenPeak Technologies to expand into the rapidly growing Internet of Things, we are investing in our BAW capacity to support increasing customer forecasts, and, since the beginning of fiscal 2016, we have returned approximately $1.3 billion to shareholders through share repurchases.” (Original Source)
Shares of Qorvo are up 7.39% to $47.80 in after-hours trading. QRVO has a 1-year high of $88.35 and a 1-year low of $33.30. The stock’s 50-day moving average is $48.33 and its 200-day moving average is $47.63.
On the ratings front, Qorvo has been the subject of a number of recent research reports. In a report issued on May 2, Goldman Sachs analyst Toshiya Hari maintained a Hold rating on QRVO, with a price target of $44, which represents a slight downside potential from current levels. Separately, on April 27, Needham’s Quinn Bolton reiterated a Buy rating on the stock and has a price target of $50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Toshiya Hari and Quinn Bolton have a total average return of -0.4% and 14.3% respectively. Hari has a success rate of 50.0% and is ranked #2498 out of 3838 analysts, while Bolton has a success rate of 58.3% and is ranked #82.
The street is mostly Bullish on QRVO stock. Out of 10 analysts who cover the stock, 5 suggest a Buy rating , 4 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $53.20, which implies an upside of 19.6% from current levels.
Qorvo, Inc. engages in the provision of core technologies and radio frequency solutions for mobile, infrastructure, and aerospace or defense applications. Its products include amplifiers, control products, discrete transistors and integrated circuits, filters and duplexers, frequency converters, integrated modules, optical components, oscillators, passives and switches. The company was founded on December 13, 2013 and is headquartered in Greensboro, NC.