Core Viewpoint - Qorvo Inc. is considered one of the most undervalued stocks, with a recommendation to buy and hold for five years, despite recent mixed financial results and tempered guidance for the upcoming quarter [1]. Financial Performance - Qorvo reported Q3 FY 2026 results with revenue of $993.0 million, reflecting an 8.4% year-over-year increase but a 6.2% decrease sequentially, slightly exceeding consensus expectations [1]. - The adjusted EPS for the quarter was $2.17, surpassing the Street's estimate of $1.86 [1]. Future Guidance - The company provided revenue guidance for Q4 FY 2026, projecting between $775.0 million and $825.0 million, which is below analysts' expectations of $903.8 million [2]. - Expected per-share profit for Q4 is between $1.05 and $1.35, just below the Wall Street projection of $1.37 [2]. Customer Dependency - Qorvo supplies radio-frequency chips to Apple, its largest customer, which accounts for approximately 50% of the company's total revenue [3]. - The lowered revenue expectations are attributed to a seasonal decline in demand from Apple, as noted by Qorvo's CEO Bob Bruggeworth [3]. Strategic Developments - The company is currently involved in a $22 billion cash-and-stock transaction to merge with Skyworks Solutions Inc., a deal announced in October 2025 [3]. Business Focus - Qorvo develops and sells technologies and products for various markets, including wireless, wired, and power sectors, serving industries such as defense, aerospace, and 5G/6G infrastructure [4].

Qorvo (NASDAQ:QRVO) stock is currently in Phase 16 of its 18-phase Adhishthana cycle on the weekly charts and is navigating what is known as the triad formation. So far, the stock's structure within this window does not look encouraging. A closer look at the triads helps explain why the risk-reward profile is becoming increasingly skewed.Analysing Qorvo Stock's Triad FormationQorvo is now in Phase 16, placing it squarely within the Guna Triads. Under the Adhishthana framework, Phases 14, 15, and 16 together ...

Business transitions can be tough. Just ask Qorvo, Inc. ( QRVO ). Transitions can also be long-term, leaving investors with a short-term temper. This last conference call and report fully illustrate this necessary part of investing, at leastI have been an investor for several decades enduring the 87 crash, 2000 crash, and 08 crash. I do use trading systems developed with TradeStation. I have enjoyed the rewards from both buy and hold and trading. My professional experiences includes several decades as a pro ...

Core Insights - Business transitions can be challenging for companies, as illustrated by Qorvo's recent performance and investor reactions [1] Company Analysis - Qorvo is currently undergoing a significant transition, which has led to investor impatience due to the prolonged nature of these changes [1] - The company has experienced various market cycles, including notable crashes in 1987, 2000, and 2008, indicating a history of resilience [1] Investment Perspective - The article reflects a long-term investment strategy, highlighting the balance between buy-and-hold and trading approaches [1]

Summary of Earnings Call Company and Industry - **Companies Mentioned**: STX (Seagate Technology), ASML, TXN (Texas Instruments), QRVO (Qorvo) - **Industry**: Technology, specifically focusing on data storage, semiconductors, and electronics Key Points and Arguments STX (Seagate Technology) - **Earnings Performance**: - Revenue of $2.83 billion, up 22% year-over-year, compared to a previous quarter's growth of 21% and market expectations of $2.74 billion, which was approximately 18% growth [7][6] - EPS of $3.11, exceeding market expectations of $2.83; Non-GAAP gross margin at 42.2% vs. expected 40.8% [7] - **Market Commentary**: - Management described an "exceptionally strong" data center environment, expecting demand to offset typical seasonal declines [9] - Nearline capacity fully allocated through CY26, with plans to accept orders for 1H27 [12] - **Pricing Trends**: - Revenue per TB remains stable with a modest increase in $/TB expected to continue, indicating a potential shift in pricing dynamics [12] - **Growth Drivers**: - Incremental storage-server demand linked to AI workloads, with data centers remaining the core driver of growth [9] TXN (Texas Instruments) - **Earnings Performance**: - Q4 revenue of $4.423 billion, up 10.4% year-over-year, aligning with market expectations [24][26] - Q1 guidance midpoint of $4.50 billion, indicating a 2% quarter-over-quarter increase and 10.6% year-over-year growth [24] - **Market Commentary**: - Management expressed optimism about industrial recovery and data center strength, with improving orders and backlog [23] - Data center business expected to grow approximately 70% year-over-year [26] - **Pricing Trends**: - Management anticipates low single-digit price declines (~2-3%) in 2026, emphasizing the impact of annual negotiations [26] QRVO (Qorvo) - **Earnings Performance**: - Q4 revenue and EPS were better than expected, but Q1 guidance was approximately 12% below market expectations [32][35] - **Market Commentary**: - Management attributed revenue gaps to weakness in Android and planned exits from lower-margin models [35] - Concerns about the sustainability of profitability amidst declining Android sales and competition [41] - **Growth Drivers**: - Focus on transitioning to higher-quality, more durable programs, with expectations of gross margins above 50% despite revenue declines [42] ASML - **Earnings Performance**: - Stock price increased by 5% due to bookings of €13 billion, significantly exceeding expectations [45] - **Market Commentary**: - Management highlighted strong progress with customers and revenue guidance implying 4-20% year-over-year growth for 2026 [46] - **Growth Drivers**: - Continued demand in semiconductor capital expenditures, with a focus on high-volume manufacturing tools [46] Additional Important Insights - **Market Sentiment**: - The overall sentiment in the technology sector appears positive, driven by strong earnings reports and optimistic guidance from key players [1][2] - **Investment Considerations**: - The discussions around pricing stability and growth in data center demand suggest potential investment opportunities in companies like STX and TXN, while QRVO faces challenges that may impact its valuation [18][22][42]

Valuation doesn’t move stocks in the short term – cheap stocks don’t go up just because the market suddenly realizes they’re cheap, and expensive stocks don’t sell off just because the market collectively looks at theAnalyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no busine ...

Financial Performance - Revenue for Q3 fiscal 2026 increased by 8.4% to $992.96 million compared to $916.32 million in Q3 fiscal 2025, driven by higher demand in smartphones and defense sectors [87]. - Gross margin improved to 46.7% in Q3 fiscal 2026 from 42.7% in Q3 fiscal 2025, attributed to reduced exposure to lower-margin products and a favorable business mix [87][89]. - Operating income surged to $192.14 million in Q3 fiscal 2026, a 262.4% increase from $53.03 million in Q3 fiscal 2025 [87]. - Net income per diluted share rose to $1.75 in Q3 fiscal 2026, compared to $0.43 in Q3 fiscal 2025 [87]. - Consolidated revenue for the nine months ended December 27, 2025, was $2.87 billion, a slight increase of 0.7% from $2.85 billion in the same period of the previous year [88]. - For the nine months ended December 27, 2025, the company reported revenue of $502.9 million in the High Performance Analog segment, an increase of 11.9% compared to $449.4 million for the same period in 2024 [99]. - Operating income in the High Performance Analog segment for the nine months ended December 27, 2025, was $119.1 million, a significant increase of 135.7% from $50.5 million in the prior year [99]. - The Connectivity and Sensors Group reported a revenue decrease of 11.5% for the nine months ended December 27, 2025, totaling $328.4 million compared to $371.2 million in the same period of 2024 [105]. - The Advanced Cellular Group achieved revenue of $2.0 billion for the nine months ended December 27, 2025, a slight increase of 0.5% from $2.0 billion in the previous year [109]. - The company recorded an operating income of $536.8 million in the Advanced Cellular Group for the nine months ended December 27, 2025, reflecting an 8.9% increase from $492.7 million in the prior year [109]. Cash Flow and Investments - Net cash provided by operating activities was $265.4 million in Q3 fiscal 2026, up from $214.1 million in Q3 fiscal 2025 [87]. - For the nine months ended December 27, 2025, net cash provided by operating activities was $532.4 million, an increase from $423.0 million for the same period in 2024 [130][131]. - Net cash used in investing activities was $61.7 million for the nine months ended December 27, 2025, compared to $59.1 million for the same period in 2024 [132]. - The company repurchased approximately 1.6 million shares of common stock for approximately $132.7 million during the nine months ended December 27, 2025, with $816.2 million remaining authorized for future repurchases [129]. - The company suspended share repurchase activity following the announcement of the mergers but may resume in the future [129]. Expenses and Liabilities - Research and development expenses were $178.07 million in Q3 fiscal 2026, slightly down from $179.13 million in Q3 fiscal 2025 [88]. - Other operating expenses included $14.7 million in merger-related costs and a gain of $19.2 million from the sale of a business segment in Q3 fiscal 2026 [92]. - Interest expense for the nine months ended December 27, 2025, was $55.3 million, a decrease from $58.3 million in the same period of 2024 [115]. - Income tax expense for the nine months ended December 27, 2025, was $67.3 million, significantly higher than $26.4 million for the same period in 2024 [120]. - Long-term liabilities increased to $2.5 billion as of December 27, 2025, compared to $2.4 billion as of March 29, 2025 [145][146]. Capital and Future Outlook - Capital expenditures decreased to $28.5 million in Q3 fiscal 2026 from $37.8 million in Q3 fiscal 2025 [87]. - The company has capital commitments of approximately $50.6 million primarily for expanding capabilities to develop and support new products [139]. - The company entered into a five-year unsecured senior credit facility providing for a $325.0 million senior revolving line of credit [135]. - Future capital requirements may differ materially based on market acceptance, acquisition opportunities, and technological advances [140]. - The proposed merger with Skyworks Solutions is expected to be completed in early 2027, pending stockholder and regulatory approvals [86]. Assets and Working Capital - As of December 27, 2025, the company had working capital of approximately $1.8 billion, including $1.3 billion in cash and cash equivalents, compared to $1.4 billion in working capital as of March 29, 2025 [125]. - The company held approximately $1.1 billion in cash and cash equivalents in foreign subsidiaries, with $949.8 million in Singapore [126]. - As of December 27, 2025, total current assets were $805.5 million, while total non-current assets were $2.3 billion [145].

Core Insights - Qorvo, Inc. is a leading provider of connectivity and power solutions, known for its innovative products across automotive, consumer electronics, and telecommunications sectors [1] - The company is actively competing in the semiconductor industry, focusing on strategic growth and technological advancements [1] Financial Performance - For Q3 2026, Qorvo reported a revenue of $993 million on a GAAP basis, with a gross margin of 46.7% [3][6] - Non-GAAP figures showed a gross margin of 49.1%, operating income of $247.6 million, and diluted earnings per share of $2.17 [3][6] - The operating income on a GAAP basis was $192.1 million, with diluted earnings per share at $1.75 [3] Market Position - Qorvo's market capitalization is approximately $7.36 billion, with a trading volume of 2,106,374 shares on NASDAQ [5][6] - The stock has fluctuated between a 52-week high of $106.30 and a low of $49.46 [5][6] Customer and Segment Performance - Revenue growth in the December quarter was driven by strong performance from the largest customer, with all operating segments showing year-over-year growth [4] - Significant contributions to revenue came from automotive components, consumer and enterprise Wi-Fi, and power management sectors [4] Price Target and Stock Performance - Morgan Stanley set a new price target for Qorvo at $84, indicating a potential increase of approximately 6.86% from the current stock price of $79.67 [2][6] - The stock has experienced a decrease of 3.14, or -3.79%, from its previous price [2]

This Apple Supplier's Stock Is Tumbling. Blame Its Merger Partner Qorvo. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# This Apple Supplier's Stock Is Tumbling. Blame Its Merger Partner Qorvo.By [Nate Wolf]ShareResize---ReprintsIn this art ...

Key Takeaways Qorvo posts Q3 net income of $164.1M, up from $41.3M a year ago.Revenues rise to $993M, driven by premium smartphones and iPad wins.HPA, CSG, and ACG segments see growth, lifting margins and profitability.Qorvo, Inc. (QRVO) reported strong third-quarter fiscal 2026 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.During the quarter, the company’s strong growth was driven by content gains, focus on higher-margin flagship smartphones, an improved product ...