Qorvo Stock Plummets After Chipmaker Posts Surprise Loss, Warns of Slump

Core Insights - Qorvo reported an unexpected loss of $17.4 million, or $0.18 per share, for the second quarter of fiscal 2025, contrasting sharply with analyst expectations of a profit of $101.9 million, or $1.03 per share [1] - The company warned of a continued slowdown in business, primarily due to a shift in consumer preference towards entry-tier Android 5G smartphones, negatively impacting sales of mid-tier models [1][2] - Qorvo's shares fell over 25%, reaching their lowest level since the onset of the COVID-19 pandemic in 2020 [1] Financial Performance - Revenue for Qorvo decreased by 5% year-over-year to $1.05 billion, aligning with forecasts [1] - Sales in the Advanced Cellular Group (ACG) dropped 12% to $751.4 million, while the High Performance Analog (HPA) division saw a 1% decline to $148.3 million [2] - Conversely, the Connectivity and Sensors Group (CSG) experienced a significant sales increase of 42% to $146.8 million [2] Strategic Actions - The company is implementing measures to address financial challenges, including factory consolidations and operating expense reductions [2] - Qorvo anticipates a slight decline in full-year revenue and gross margin compared to fiscal 2024 [2] - For the current quarter, Qorvo projects adjusted earnings per share (EPS) between $1.10 and $1.30, with revenue expectations of $900 million, plus or minus $25 million [2]