Qorvo, Inc. (QRVO) is set to report fiscal fourth-quarter 2025 results on April 29, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 34.17%. It pulled off a trailing four-quarter earnings surprise of 18.3% on average. The leading provider of radio frequency solutions is expected to witness revenue decline year over year owing to weakness in the Advance Cellular Group (ACG) segment and macroeconomic headwinds. However, efforts in accelerating 5G deployments ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Qorvo (QRVO) . This company, which is in the Zacks Semiconductors - Radio Frequency industry, shows potential for another earnings beat.This chipmaker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 17.89%.For the last ...

Investors might want to bet on Qorvo (QRVO) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a changi ...

Company Overview - Qorvo is a leading global provider of connectivity and power solutions, specializing in innovative semiconductor solutions [3] - The company serves diverse high-growth segments including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure, and mobile [3] Upcoming Financial Results - Qorvo will host a conference call to review fiscal 2025 fourth quarter financial results on April 29, 2025, at 4:30 p.m. (ET) [1] - The financial results will be distributed at approximately 4:00 p.m. (ET) on the same day [2] Conference Call Details - A telephone playback of the conference call will be available approximately two hours after the call's completion, accessible by dialing 1-412-317-0088 with passcode 2889510 [2] - The playback will be available until the close of business on May 6, 2025 [2]

Core Viewpoint - Qorvo has appointed Richard L. Clemmer and Christopher R. Koopmans as new independent directors, while David H. Y. Ho retires from the Board, marking a significant refreshment initiative aimed at enhancing the Board's industry expertise and operational experience [2][3]. Group 1: Board Changes - Richard L. Clemmer and Christopher R. Koopmans are appointed as independent directors, effective immediately [2]. - David H. Y. Ho will retire from the Board, effective immediately, as he was not standing for reelection at the 2025 Annual Meeting [2][3]. - Following these changes, Qorvo's Board will consist of nine directors, with eight being independent [3]. Group 2: Director Profiles - Richard L. Clemmer has a strong background in the semiconductor industry, having served as CEO of NXP Semiconductors N.V. and has a proven track record of driving growth and financial transformations [5][6]. - Christopher R. Koopmans has 25 years of experience in the technology sector and currently serves as COO of Marvell Technology, overseeing critical business functions and corporate transformations [7]. Group 3: Strategic Focus - The Board's refreshment initiative aims to bring in directors with deep industry knowledge to support Qorvo's growth and diversification strategy [3][4]. - The new directors are expected to contribute valuable insights to enhance Qorvo's strategic direction and shareholder engagement [4].

Industry Overview - The Zacks Semiconductors - Radio Frequency industry is currently facing a challenging demand environment, leading to inventory buildup and sluggish capital spending by telecom carriers [1][9] - Heightened global macroeconomic uncertainties and weakness in end-markets such as automotive, industrial, and infrastructure are concerning for industry participants [1] Key Trends - Accelerated 5G deployment is acting as a tailwind, with the rapid implementation of 5G infrastructure and increased demand for RF power amplifiers due to higher bandwidth needs [5] - Innovation in IoT, wearables, drones, and autonomous vehicles is expected to drive demand for RF semiconductor products beyond smartphones [6] - The growing adoption of electric vehicles (EVs) is aiding industry prospects, with the EV market expected to expand fourfold by 2027 [8] Current Performance - The Zacks Semiconductors - Radio Frequency industry has underperformed the S&P 500 and its sector over the past year, declining 41.7% compared to the S&P 500's return of 17.1% [13] - The industry's current valuation is at a forward 12-month price-to-earnings ratio of 15.01X, lower than the S&P 500's 21.96X and the sector's 25.26X [14] Company Highlights - RF Industries, with a Zacks Rank 2 (Buy), is expanding its portfolio with applications in small cells and industrial connectivity, expecting sales growth in 2025 and at least a 10% adjusted EBITDA margin [15][16] - Qorvo, with a Zacks Rank 3 (Hold), has seen a 3.9% increase in shares year-to-date, benefiting from the adoption of WiFi 7 and strong demand for RF solutions [17][19]

Core Insights - Qorvo reported its December quarter results shortly before Apple's earnings, providing insights into both companies' performances [1] Company Performance - Management highlighted both positive and negative impacts from its strategic decision to abandon certain business lines [1]

Core Viewpoint - Qorvo (QRVO) has shown a downtrend recently, losing 5.4% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][4]. - The hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a new low, buying interest has emerged to push the stock price up towards the opening price [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for Qorvo, which is a bullish indicator, as it typically leads to price appreciation [6]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 21.4%, indicating strong agreement among analysts that Qorvo will report better earnings than previously predicted [7]. - Qorvo currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [8].

Core Viewpoint - Qorvo (QRVO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which are a significant driver of stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling decisions, which in turn affects stock prices [3]. Qorvo's Earnings Outlook - The upgrade for Qorvo reflects an improvement in the company's underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending March 2025, Qorvo is projected to earn $5.35 per share, representing a 14% decrease from the previous year, but the Zacks Consensus Estimate has increased by 21.3% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Qorvo to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Revenue Performance - Revenue for Q3 fiscal 2025 decreased by 14.7% to $916.3 million compared to $1,073.9 million in Q3 fiscal 2024, primarily due to a shift to lower RF content 5G smartphones[101]. - Revenue for the nine months ended December 28, 2024, increased by 0.7% to $2.85 billion compared to $2.83 billion for the same period in 2023[102]. - The High Performance Analog segment saw a revenue increase of 44.4% to $171.7 million in Q3 fiscal 2025, attributed to higher revenue from infrastructure and defense sectors[112]. - HPA revenue for the nine months ended December 28, 2024 increased by $41.0 million, driven by a $38.0 million increase in power management revenue[116]. - Connectivity and Sensors Group (CSG) revenue for the nine months ended December 28, 2024 was $371.2 million, a 19.1% increase from $311.8 million in the prior year[119]. - Advanced Cellular Group (ACG) revenue for the three months ended December 28, 2024 decreased by $211.0 million, a 24.9% decline compared to the same period last year[124]. Profitability and Income - Gross margin improved to 42.7% in Q3 fiscal 2025 from 36.1% in Q3 fiscal 2024, aided by a favorable business mix[101]. - Operating income for Q3 fiscal 2025 was $53.0 million, a significant recovery from an operating loss of $41.6 million in Q3 fiscal 2024[101]. - Net income per diluted share rose to $0.43 in Q3 fiscal 2025, compared to a net loss per share of $1.31 in Q3 fiscal 2024[101]. - Operating loss for the Connectivity and Sensors Group improved by $33.3 million for the nine months ended December 28, 2024, compared to the prior year[123]. Cash Flow and Operating Activities - Net cash provided by operating activities was $214.1 million in Q3 fiscal 2025, down from $492.9 million in Q3 fiscal 2024[101]. - Cash generated from operating activities was $423.0 million for the nine months ended December 28, 2024, down from $630.8 million in the prior year[143]. Expenses and Capital Expenditures - Capital expenditures increased to $37.8 million in Q3 fiscal 2025 from $26.4 million in Q3 fiscal 2024[101]. - Research and development expenses rose by 13.0% to $567.8 million for the nine months ended December 28, 2024, driven by increased employee-related costs and product development[102]. - Operating expenses increased by $27.9 million due to the acquisition of Anokiwave and higher employee-related costs[117]. - Restructuring-related charges amounted to $68.1 million in Q3 fiscal 2025, primarily due to initiatives to optimize manufacturing and reduce operating expenses[101]. Shareholder Actions and Financial Position - The company repurchased approximately 3.3 million shares for $308.3 million during the nine months ended December 28, 2024, with $998.6 million remaining authorized for repurchases[142]. - As of December 28, 2024, the company had working capital of approximately $1,289.0 million, including $769.4 million in cash and cash equivalents[138]. - The company believes it has sufficient liquidity to meet both short-term and long-term cash requirements based on current and projected cash flows[152]. Debt and Financing - The company entered into a five-year unsecured senior credit facility with a $325.0 million senior revolving line of credit, which can be increased by an additional $325.0 million[146]. - The company issued $500.0 million aggregate principal amount of 2024 Notes, with $412.5 million repaid at maturity in the third quarter of fiscal 2025[148]. - Interest on the 2029 Notes is payable at a rate of 4.375% per annum, with a total principal amount of $850.0 million issued[149]. Legal and Compliance - The company is involved in various legal proceedings but does not expect these matters to have a material adverse effect on its financial position[153]. - The company has no borrowings under the Revolving Facility during the nine months ended December 28, 2024, and is in compliance with all covenants[147]. Assets and Liabilities - The company has $2,349,531,000 in non-current assets and $241,062,000 in current liabilities as of December 28, 2024[158]. - The company’s long-term liabilities amounted to $2,421,686,000 as of December 28, 2024[158]. - The company recognized an anticipated tax credit under the CHIPS Act during the three and nine months ended December 28, 2024[141].