Qorvo (QRVO) Down 10.3% Since Last Earnings Report: Can It Rebound?

Core Insights - Qorvo's shares have declined approximately 10.3% since the last earnings report, underperforming the S&P 500 [1][2] Financial Performance - Qorvo reported strong second-quarter fiscal 2026 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [3] - The company achieved a net income of $119.6 million or $1.28 per share, a significant improvement from a net loss of $17.4 million or a loss of $0.18 per share in the same quarter last year [5] - Revenues for the quarter were $1.05 billion, slightly up from $1.04 billion year-over-year, driven by demand in the Advanced Cellular Group and High Performance Analog segments [6] Segment Analysis - High Performance Analog (HPA) revenues increased to $174.6 million from $148.3 million year-over-year, supported by strong performance in defense and aerospace [7] - Connectivity and Sensors Group (CSG) revenues decreased to $106.9 million from $146.8 million due to a delayed product ramp-up from a major customer [8] - Advanced Cellular Group (ACG) net sales were $777 million, reflecting a 3.4% year-over-year growth, primarily from the premium smartphone segment [8] Profitability Metrics - Non-GAAP gross profit rose to $526.2 million with a margin of 49.7%, compared to $492 million and a margin of 47% in the previous year [9] - Non-GAAP operating expenses decreased to $273.5 million from $279.8 million year-over-year, leading to a non-GAAP operating income of $252.6 million, up from $212.2 million [9] Cash Flow and Liquidity - As of September 27, 2025, Qorvo had $1.1 billion in cash and cash equivalents and $1.54 billion in long-term debt [10] - The company generated $84 million in net cash from operating activities during the quarter, with a free cash flow of $42.2 million [10] Future Outlook - For the third quarter of fiscal 2026, Qorvo expects revenues of approximately $985 million, with a non-GAAP gross margin projected between 47% and 49% [12] - Non-GAAP earnings are anticipated to be around $1.85 per share, reflecting an increase from $1.88 per share in the prior year [12] Estimate Trends - Recent estimates for Qorvo have shown an upward trend, with the consensus estimate shifting by 8.97% [13] - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15]