Core Viewpoint - Qorvo's stock experienced a significant increase following the release of its fiscal Q4 2025 earnings report, which exceeded analyst expectations despite a year-over-year decline in sales [1][2]. Financial Performance - Qorvo reported earnings of $1.42 per share, surpassing the analyst forecast of $1 per share, with sales reaching $869.5 million compared to the expected $850.5 million [1][2]. - The company's sales declined by 7.6% year over year, but gross profit margins improved by 160 basis points to 42.2% [2]. - Net income rose dramatically from $0.03 per share a year ago to $0.33 per share under GAAP, indicating a significant improvement [3]. - Qorvo generated $171 million in positive free cash flow for the quarter and $485 million for the entire fiscal year 2025 [3]. Market Outlook - Despite the positive earnings report, management forecasted only $775 million in sales for fiscal Q1 2026, which represents a 13% decline compared to the same quarter last year, suggesting worsening business conditions [5]. - The projected gross margins for the upcoming quarter are estimated to be between 42% and 44%, but this is a non-GAAP estimate, leaving uncertainty regarding actual GAAP margins [5]. - The stock appears undervalued with a price-to-free cash flow ratio of approximately 12x, but caution is advised before making investment decisions based solely on valuation [4].

Core Insights - Qorvo, Inc. reported strong fourth-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1] Financial Performance - The company reported a GAAP net income of $31.4 million or 33 cents per share, up from $2.7 million or 3 cents per share in the prior-year quarter, attributed to lower operating expenses and an income tax benefit [3] - Non-GAAP net income was $133.3 million or $1.42 per share, slightly down from $135.5 million or $1.39 per share year-over-year, surpassing the Zacks Consensus Estimate by 41 cents [4] - Total revenues for fiscal 2025 were $3.72 billion, a decrease from $3.77 billion in fiscal 2024 [6] Revenue Breakdown - Net sales for the quarter declined to $869.5 million from $941 million in the prior-year quarter, impacted by a drop in Advanced Cellular Group (ACG) and Connectivity and Sensors Group (CSG) verticals, but secured major design wins in various applications [5][2] - High Performance Analog revenues increased to $187.9 million from $164.6 million year-over-year, driven by strong demand in defense and aerospace sectors [7] - Revenues from CSG were $101.3 million, down from $122.8 million in the year-ago quarter, missing estimates [8] Cash Flow and Liquidity - As of March 31, 2025, Qorvo had $1.02 billion in cash and cash equivalents and $1.55 billion in long-term debt, with net cash from operating activities of $199.2 million and free cash flow of $170.7 million for the quarter [11] Outlook - For the first quarter of fiscal 2026, the company expects revenues of $775 million (+/- $25 million) and non-GAAP gross margin between 42% and 44%, with non-GAAP earnings per share projected in the range of 50-75 cents [12]

Qorvo (QRVO) Q4 2025 Earnings Call April 29, 2025 09:38 PM ET Speaker0 Good day, and welcome to the Corvo Inc. Fourth Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press then 2. Please note, this conference is being recorded. I would now like to turn the conference over to Dougl ...

Qorvo, Inc. (NASDAQ:QRVO) Q4 2025 Earnings Conference Call April 29, 2025 4:30 PM ET Company Participants Douglas DeLieto - VP of IR Bob Bruggeworth - CEO Grant Brown - SVP and CFO Frank Stewart - SVP and President of Advanced Cellular Dave Fullwood - SVP of Sales & Marketing Philip Chesley - SVP and President of High Performance Analog Eric Creviston - SVP and President of Connectivity & Sensors Conference Call Participants Thomas O'Malley - Barclays Harsh Kumar - Piper Sandler Chris Caso - Wolf Research K ...

Core Viewpoint - Qorvo reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and showing a year-over-year increase from $1.39 per share [1] Financial Performance - The company achieved revenues of $869.47 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.09%, but down from $940.99 million a year ago [2] - Over the last four quarters, Qorvo has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Qorvo shares have declined approximately 8.8% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $762.13 million, and for the current fiscal year, it is $5.62 on revenues of $3.7 billion [7] - The trend of estimate revisions for Qorvo has been favorable leading up to the earnings release [6] Industry Context - The Semiconductors - Radio Frequency industry, to which Qorvo belongs, is currently ranked in the top 2% of over 250 Zacks industries, suggesting strong performance potential [8]

Financial Data and Key Metrics Changes - Qorvo reported revenue of $869 million for the fourth quarter, exceeding the midpoint of guidance, with non-GAAP diluted earnings of $1.42 per share [22] - For fiscal year 2025, total revenue reached $3.7 billion, with a non-GAAP gross margin of 45.2%, an increase of approximately 70 basis points compared to fiscal year 2024 [23] - The company ended the quarter with approximately $1 billion in cash and equivalents, $1.5 billion in long-term debt, and a net inventory balance of $641 million, down $70 million year-over-year [24] Business Line Data and Key Metrics Changes - In the Advanced Cellular Group (ACG), Qorvo supported a critical phone launch for its largest customer, contributing to a long-term content growth opportunity [6][7] - The High Performance Analog (HPA) segment achieved record revenue in defense and aerospace, with a sales funnel exceeding $5 billion [12][13] - The Connectivity and Sensors Group (CSG) saw a growth in its ultra-wideband sales funnel, which now exceeds $2 billion [7] Market Data and Key Metrics Changes - In the automotive market, Qorvo began sampling a fully integrated ultra-wideband programmable SoC, addressing industry demand for accurate UWB technology [9] - The defense and aerospace market is experiencing increased government spending, providing a multi-year tailwind for revenue growth [14] - Demand for data center power management ICs is growing, particularly in enterprise and AI data centers [16] Company Strategy and Development Direction - Qorvo's strategy focuses on winning content with its largest customer, diversifying through CSG and HPA, and maintaining operational efficiency [8][31] - The company is shifting away from legacy Android programs and consolidating its manufacturing footprint to enhance margins [9][29] - Qorvo aims to optimize its portfolio by divesting underperforming areas and focusing on high-performing segments [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of defense and aerospace, citing a robust demand for high-speed reliable connectivity [15][14] - The company anticipates a slight uptick in Android sales in the upcoming quarter, but expects a year-over-year decline as mass-tier phones ramp down [42][43] - Qorvo is actively monitoring the tariff situation and has implemented measures to mitigate potential impacts [25][61] Other Important Information - The company generated free cash flow of $171 million in the fourth quarter and $485 million for the fiscal year [24] - Qorvo plans to close its Costa Rica facility to consolidate operations and enhance efficiency [29][30] Q&A Session Summary Question: Commentary on content growth with the largest smartphone customer - Management highlighted excitement about the upcoming fall launch and the capture of content across multiple product categories, including antenna tuning and envelope tracking [35][37] Question: Clarification on the ET solution and content increase - Management confirmed that the ET PMIC is sole-sourced and that content growth is coming from various product categories [49][50] Question: Impact of tariffs and inventory management - Management noted that while there has been some modest activity related to tariffs, it has not significantly impacted operations [53][61] Question: Guidance for fiscal year 2026 - Management indicated that fiscal year 2026 will focus on execution and margin improvement, with expectations for double-digit growth in HPA and CSG [70][71] Question: Progress on inventory and demand in China - Management reported good progress in reducing inventory levels and does not foresee a noticeable impact from demand fluctuations in China [78]

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section summarizes Qorvo's latest financial results, management's strategic commentary, and the company's forward-looking guidance [Q4 FY2025 Financial Highlights](index=1&type=section&id=Q4%20FY2025%20Financial%20Highlights) Qorvo reported fiscal 2025 fourth-quarter revenue of $869.5 million, with GAAP diluted EPS of $0.33 and non-GAAP diluted EPS of $1.42, alongside a non-GAAP gross margin of 45.9% Q4 FY2025 Financial Highlights | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Revenue | $869.5 million | $869.5 million | | Gross Margin | 42.2% | 45.9% | | Operating Income | $28.2 million | $151.8 million | | Diluted EPS | $0.33 | $1.42 | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized strong Q4 revenue and gross margin expansion, outlining strategic priorities in customer content, segment diversification, and operational efficiency to enhance shareholder value - The CEO noted that the company surpassed the midpoint of EPS guidance by **42 cents** and expanded gross margin year-over-year[3](index=3&type=chunk) - Strategic focus is on winning content with the largest customer and diversifying through the CSG (Connectivity and Sensors Group) and HPA (High Performance Analog) segments[3](index=3&type=chunk) - The company generated **$171 million** of free cash flow in Q4 and **$485 million** for the full fiscal year 2025[4](index=4&type=chunk) - Operational objectives include portfolio optimization, factory consolidation, and continued cost discipline to expand margins and enhance efficiency[4](index=4&type=chunk) [Business Outlook for Q1 FY2026](index=1&type=section&id=Business%20Outlook%20for%20Q1%20FY2026) For the upcoming first quarter of fiscal 2026 (ending June 2025), Qorvo anticipates revenue of approximately $775 million, with a non-GAAP gross margin between 42% and 44% and non-GAAP diluted EPS in the range of $0.50 to $0.75 Q1 FY2026 Business Outlook | Metric | Outlook (for June 2025 Quarter) | | :--- | :--- | | Revenue | ~$775 million (± $25 million) | | Non-GAAP Gross Margin | 42% to 44% | | Non-GAAP Diluted EPS | $0.50 to $0.75 | [Selected Financial Results](index=2&type=section&id=Selected%20Financial%20Results) This section provides a detailed breakdown of Qorvo's consolidated GAAP and non-GAAP financial results, along with segment-specific performance [Consolidated Financial Results (GAAP vs. Non-GAAP)](index=2&type=section&id=Consolidated%20Financial%20Results%20%28GAAP%20vs.%20Non-GAAP%29) In Q4 FY2025, revenue decreased sequentially and year-over-year to $869.5 million, while GAAP gross margin improved by 1.6 percentage points YoY to 42.2%, and non-GAAP gross margin expanded by 3.4 percentage points YoY to 45.9%, with non-GAAP diluted EPS at $1.42 GAAP Results (in millions, except EPS) | GAAP Results (in millions, except EPS) | Q4 FY2025 | Q3 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | :--- | | Revenue | $869.5 | $916.3 | $941.0 | | Gross Margin | 42.2% | 42.7% | 40.6% | | Operating Income | $28.2 | $53.0 | $30.0 | | Diluted EPS | $0.33 | $0.43 | $0.03 | Non-GAAP Results (in millions, except EPS) | Non-GAAP Results (in millions, except EPS) | Q4 FY2025 | Q3 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | :--- | | Revenue | $869.5 | $916.3 | $941.0 | | Gross Margin | 45.9% | 46.5% | 42.5% | | Operating Income | $151.8 | $177.9 | $147.2 | | Diluted EPS | $1.42 | $1.61 | $1.39 | [Segment Financial Results (GAAP)](index=3&type=section&id=Segment%20Financial%20Results%20%28GAAP%29) In Q4 FY2025, the High Performance Analog (HPA) segment demonstrated strong growth with revenue increasing 14.2% year-over-year to $187.9 million and operating margin expanding to 31.1%, while CSG and ACG segments experienced revenue declines Segment Revenue (in millions) | Segment Revenue (in millions) | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | HPA | $187.9 | 14.2% | | CSG | $101.3 | (17.5)% | | ACG | $580.3 | (11.2)% | Segment Operating Income Margin | Segment Operating Income Margin | Q4 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | | HPA | 31.1% | 19.1% | | CSG | (15.4)% | (12.4)% | | ACG | 18.9% | 20.5% | - The HPA segment was the standout performer, with both revenue and operating income growing substantially year-over-year by **14.2%** and **85.4%**, respectively[12](index=12&type=chunk) [Detailed Financial Statements and Reconciliations](index=8&type=section&id=Detailed%20Financial%20Statements%20and%20Reconciliations) This section presents Qorvo's full consolidated financial statements, including statements of operations and balance sheets, along with detailed reconciliations of GAAP to non-GAAP measures [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the full twelve months ended March 29, 2025, Qorvo's revenue was $3.72 billion, a slight decrease from $3.77 billion in the prior fiscal year, achieving a significant turnaround with a net income of $55.6 million compared to a net loss of $70.3 million in fiscal 2024 Full Year Results (in thousands) | Full Year Results (in thousands) | Twelve Months Ended Mar 29, 2025 | Twelve Months Ended Mar 30, 2024 | | :--- | :--- | :--- | | Revenue | $3,718,971 | $3,769,506 | | Operating Income | $95,527 | $91,701 | | Net Income (Loss) | $55,615 | $(70,322) | | Diluted EPS | $0.58 | $(0.72) | [Condensed Consolidated Balance Sheets](index=13&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 29, 2025, Qorvo reported total assets of $5.93 billion, a decrease from $6.55 billion year-over-year, with cash and cash equivalents stable at $1.02 billion, reduced inventories, and decreased total liabilities Balance Sheet Items (in thousands) | Balance Sheet Items (in thousands) | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,021,176 | $1,029,258 | | Inventories | $640,992 | $710,555 | | Total assets | $5,933,131 | $6,554,635 | | Total liabilities | $2,540,819 | $2,998,263 | | Stockholders' equity | $3,392,312 | $3,556,372 | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details the adjustments made to derive non-GAAP figures from GAAP results, showing how GAAP operating income of $28.2 million was adjusted to a non-GAAP operating income of $151.8 million, and free cash flow for the quarter was $170.7 million - Key adjustments to reconcile GAAP to Non-GAAP operating income in Q4 FY2025 included a **$79.5 million** goodwill and intangible asset impairment, **$27.4 million** in stock-based compensation, and **$24.0 million** in amortization of intangible assets[40](index=40&type=chunk) - Free cash flow for the fourth quarter was **$170.7 million**, derived from **$199.2 million** in net cash provided by operating activities less **$28.5 million** in purchases of property and equipment[41](index=41&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) This section provides additional context on Qorvo's non-GAAP financial measures, forward-looking statements, and general company information [Explanation of Non-GAAP Financial Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Qorvo utilizes non-GAAP financial measures to provide investors with supplemental information for operational analysis, excluding items like stock-based compensation and restructuring costs that can obscure underlying performance trends - Management uses non-GAAP financial measures for its annual operating plan and to monitor performance against it[15](index=15&type=chunk) - The company defines Free Cash Flow as net cash provided by operating activities minus property and equipment expenditures[24](index=24&type=chunk) - Qorvo is unable to provide a reconciliation for forward-looking non-GAAP measures without unreasonable effort due to the difficulty in projecting items like stock-based compensation and restructuring charges[29](index=29&type=chunk) [Forward-Looking Statements and Risk Factors](index=7&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section includes a standard "safe harbor" warning that forward-looking statements are subject to significant risks and uncertainties, directing readers to the company's SEC filings for a comprehensive list of risk factors - The press release contains forward-looking statements that represent management's current judgment and are subject to change[35](index=35&type=chunk) - Key business risks include dependence on a few large customers, manufacturing facility operations, competitive industry pressures, and changes in government trade policies like tariffs and export restrictions[35](index=35&type=chunk) [Company and Conference Call Information](index=7&type=section&id=Company%20and%20Conference%20Call%20Information) Qorvo is a global semiconductor company serving high-growth markets, and it hosted a conference call to discuss quarterly results, with access details provided for the live webcast and subsequent telephone playback - Qorvo supplies semiconductor solutions to diverse markets including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure, and mobile[33](index=33&type=chunk) - A conference call was scheduled for **4:30 p.m. ET** on April 29, 2025, to discuss the financial results[32](index=32&type=chunk)

Bob Bruggeworth, president and chief executive officer of Qorvo, said, "During the March quarter, Qorvo achieved stronger than seasonal sequential revenue while surpassing the midpoint of EPS guidance by 42 cents and expanding gross margin year-over-year. Looking across our business segments, our growth and margin targets are anchored in a multi-year strategy focused on winning content with our largest customer and building on our core RF and power expertise to drive diversification through CSG and HPA. We ...

Qorvo, Inc. (NASDAQ: QRVO ) is due to report its fiscal Q4 on April 29 th after the market closes, so I wanted to go through some of the numbers and what I’ll be looking for in termsMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we have no st ...

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 ...