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Why Is Qorvo (QRVO) Up 4.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Qorvo (QRVO - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Qorvo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Qorvo Beats Q4 Earnings Estimates on Top-Line Growth
Qorvo reported solid fourth-quarter fiscal 2022 results driven by secular growth drivers in 5G, IoT connectivity, defense and power. Both the bottom line and the top line surpassed the respective Zacks Consensus Estimate, backed by the strength of the business model and expansion of its regional footprint.
Net Income
GAAP net income in the reported quarter was $212.3 million or $1.95 per share compared with $298.7 million or $2.60 per share in the prior-year period. Despite top-line growth, the year-over-year decrease in earnings was primarily attributable to higher operating expenses due to fresh COVID-19 lockdown restrictions in China, raw material price volatility and supply chain disruptions owing to the Russia-Ukraine war. In fiscal 2022, GAAP net income surged to $1,033.4 million or $9.26 per share from $733.6 million or $6.32 per share in fiscal 2021.
Non-GAAP earnings in the reported quarter were $339.6 million or $3.12 per share, up from $315.4 million or $2.74 per share in the year-ago quarter. The bottom line exceeded management’s guidance and beat the Zacks Consensus Estimate of $2.94.
Quarter Details
Non-GAAP revenues improved to $1,166.2 million from $1,072.7 million in the year-ago quarter. The year-over-year increase in revenues was driven by broad-based demand across markets, the fast pace of 5G deployment, customer smartphone ramp up and growth in Infrastructure and Defense products. Revenues beat the Zacks Consensus Estimate of $1,150 million. For fiscal 2022, revenues improved to $4,645.7 million from $4,015.3 million in fiscal 2021.
Non-GAAP gross margin was 52% compared with 52.6% in the year-ago quarter. Non-GAAP income from operations was $377.2 million, up from $357.2 million.
Balance Sheet
At fiscal 2022-end, cash and cash equivalents were $972.6 million, while long-term debt was $2,047.1 million compared with respective tallies of $1,397.9 million and $1,742.6 million in the prior year. Free cash flow at the end of the quarter was $295.4 million.
Outlook
For first-quarter fiscal 2023, Qorvo expects revenues to be in the range of $1–$1.05 billion, given a healthy demand schedule backed by an expanding market and customer exposure and a deep product and technical portfolio. The company expects a non-GAAP gross margin of approximately 50% and non-GAAP earnings in the range of $2.00-$2.25 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -22.7% due to these changes.
VGM Scores
Currently, Qorvo has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Qorvo has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Qorvo belongs to the Zacks Semiconductors - Radio Frequency industry. Another stock from the same industry, Skyworks Solutions (SWKS - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Skyworks reported revenues of $1.34 billion in the last reported quarter, representing a year-over-year change of +14%. EPS of $2.63 for the same period compares with $2.37 a year ago.
Skyworks is expected to post earnings of $2.36 per share for the current quarter, representing a year-over-year change of +9.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Skyworks. Also, the stock has a VGM Score of B.
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Why Is Qorvo (QRVO) Up 4.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Qorvo (QRVO - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Qorvo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Qorvo Beats Q4 Earnings Estimates on Top-Line Growth
Qorvo reported solid fourth-quarter fiscal 2022 results driven by secular growth drivers in 5G, IoT connectivity, defense and power. Both the bottom line and the top line surpassed the respective Zacks Consensus Estimate, backed by the strength of the business model and expansion of its regional footprint.
Net Income
GAAP net income in the reported quarter was $212.3 million or $1.95 per share compared with $298.7 million or $2.60 per share in the prior-year period. Despite top-line growth, the year-over-year decrease in earnings was primarily attributable to higher operating expenses due to fresh COVID-19 lockdown restrictions in China, raw material price volatility and supply chain disruptions owing to the Russia-Ukraine war. In fiscal 2022, GAAP net income surged to $1,033.4 million or $9.26 per share from $733.6 million or $6.32 per share in fiscal 2021.
Non-GAAP earnings in the reported quarter were $339.6 million or $3.12 per share, up from $315.4 million or $2.74 per share in the year-ago quarter. The bottom line exceeded management’s guidance and beat the Zacks Consensus Estimate of $2.94.
Quarter Details
Non-GAAP revenues improved to $1,166.2 million from $1,072.7 million in the year-ago quarter. The year-over-year increase in revenues was driven by broad-based demand across markets, the fast pace of 5G deployment, customer smartphone ramp up and growth in Infrastructure and Defense products. Revenues beat the Zacks Consensus Estimate of $1,150 million. For fiscal 2022, revenues improved to $4,645.7 million from $4,015.3 million in fiscal 2021.
Non-GAAP gross margin was 52% compared with 52.6% in the year-ago quarter. Non-GAAP income from operations was $377.2 million, up from $357.2 million.
Balance Sheet
At fiscal 2022-end, cash and cash equivalents were $972.6 million, while long-term debt was $2,047.1 million compared with respective tallies of $1,397.9 million and $1,742.6 million in the prior year. Free cash flow at the end of the quarter was $295.4 million.
Outlook
For first-quarter fiscal 2023, Qorvo expects revenues to be in the range of $1–$1.05 billion, given a healthy demand schedule backed by an expanding market and customer exposure and a deep product and technical portfolio. The company expects a non-GAAP gross margin of approximately 50% and non-GAAP earnings in the range of $2.00-$2.25 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -22.7% due to these changes.
VGM Scores
Currently, Qorvo has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Qorvo has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Qorvo belongs to the Zacks Semiconductors - Radio Frequency industry. Another stock from the same industry, Skyworks Solutions (SWKS - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Skyworks reported revenues of $1.34 billion in the last reported quarter, representing a year-over-year change of +14%. EPS of $2.63 for the same period compares with $2.37 a year ago.
Skyworks is expected to post earnings of $2.36 per share for the current quarter, representing a year-over-year change of +9.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Skyworks. Also, the stock has a VGM Score of B.