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Qorvo (QRVO) Beats Q4 Earnings Estimates on Solid Revenues
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Qorvo, Inc. (QRVO - Free Report) reported strong fourth-quarter fiscal 2024 results, with the bottom and the top line beating the respective Zacks Consensus Estimate. The company reported healthy top-line expansion year over year, backed by solid demand trends in multiple end markets, including defense, aerospace, power management, WI-FI, smartphone and automotive.
Net Income
On a GAAP basis, the company reported a net income of $2.7 million or 3 cents per share against a net loss of $138.4 million or a loss of $1.39 per share in the prior-year quarter. The significant improvement was primarily attributable to top-line growth.
Non-GAAP net income was $135.5 million or $1.39 per share, up from $25.7 million or 26 cents per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimates by 18 cents.
For fiscal 2024, Qorvo reported a GAAP loss of $70.3 million or a loss of 72 cents per share against a net income of $103.1 million or $1.00 per share.
Revenues
Net sales during the quarter rose to $941 million from $632.7 million in the prior-year quarter. Solid sales growth in the Connectivity and Sensors Group (CSG), High-Performance Analog (HPA) and Advance Cellular Group (ACG) business supported the revenue growth during the quarter. The company is at the forefront of global secular macro trends, including mobility, connectivity, electrification and datafication that are enabling new applications and new user experiences. The top line beat the Zacks Consensus Estimate of $925 million.
For fiscal 2024, total revenues were $3.8 billion compared with $3.6 billion in fiscal 2023.
HPA contributed $164.6 million in revenues, up from $133.1 million in the year-ago quarter largely driven by improved performance in the defense business. The company secured new product orders for several large domestic and international ground-based radar systems. The transition from legacy mechanical systems to active electronics scanning systems is driving growth in the defense and aerospace business.
In power management, the company continues to boast a strong presence in the consumer electronic sector. Healthy traction in automotive also cushioned the top line. Growing demand for DOCSIS 4.0 hybrid power doublers is supporting growth in the infrastructure business.
Revenues from CSG were $122.8 million compared with $81.9 million in the year-earlier quarter. The improvement is driven by the growing adoption of WI-FI 7 across operator, retail, enterprise and mobile segments. Solid ultra-wideband demand across various end markets, including automotive, laptop trackpads, wearables and smartphones, also supported the top line in this segment.
Net sales in ACG were $653.6 million, up 56.5% year over year, supported by strong content on multiple large customer platforms.
Other Details
Non-GAAP gross profit rose to $400.4 million from $261.2 million, with respective margins of 42.5% and 41.3%. Non-GAAP operating expenses increased to $253.2 million from $227.3 million a year ago, owing to higher investments in new product development. Non-GAAP operating income was $147.2 million, up from $33.8 million in the year-ago quarter.
Cash Flow & Liquidity
As of Mar 31, 2024, QRVO had $1.03 billion in cash and cash equivalents with $1.55 billion of long-term debt compared with respective tallies of $808.8 million and $2.05 billion in the prior-year period. The company generated $202.3 million in net cash from operating activities, with a free cash flow of $169.6 million. Qorvo repurchased $100 million worth of shares at an average price of $112 in the quarter.
Outlook
For first-quarter fiscal 2025, the company expects revenues at about $850 million (+/- $25 million). Non-GAAP gross margin is projected between 40% and 41%. Non-GAAP earnings per share are likely to be within 60-80 cents.
Qorvo expects modest revenue growth and margin improvement in fiscal 2025 year over year. Management is also undertaking various productivity enhancement initiatives across the enterprise to boost profitability.
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release first-quarter 2024 earnings on May 9. The Zacks Consensus Estimate for earnings is pegged at a loss of 80 cents per share, suggesting a decline of 715.4% from the year-ago reported figure.
Cogent carries a Zacks Tank #3 (Hold).
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release first-quarter 2024 earnings on May 9. The Zacks Consensus Estimate for earnings is pegged at $1.61 per share, indicating a growth of 15% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 7.3%. AKAM delivered an average earnings surprise of 6.5% in the last four reported quarters.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release second-quarter fiscal 2024 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, implying a decline of 34.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 4.1%. KEYS delivered an average earnings surprise of 6.4% in the last four reported quarters.
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Qorvo (QRVO) Beats Q4 Earnings Estimates on Solid Revenues
Qorvo, Inc. (QRVO - Free Report) reported strong fourth-quarter fiscal 2024 results, with the bottom and the top line beating the respective Zacks Consensus Estimate. The company reported healthy top-line expansion year over year, backed by solid demand trends in multiple end markets, including defense, aerospace, power management, WI-FI, smartphone and automotive.
Net Income
On a GAAP basis, the company reported a net income of $2.7 million or 3 cents per share against a net loss of $138.4 million or a loss of $1.39 per share in the prior-year quarter. The significant improvement was primarily attributable to top-line growth.
Non-GAAP net income was $135.5 million or $1.39 per share, up from $25.7 million or 26 cents per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimates by 18 cents.
Qorvo, Inc. Price, Consensus and EPS Surprise
Qorvo, Inc. price-consensus-eps-surprise-chart | Qorvo, Inc. Quote
For fiscal 2024, Qorvo reported a GAAP loss of $70.3 million or a loss of 72 cents per share against a net income of $103.1 million or $1.00 per share.
Revenues
Net sales during the quarter rose to $941 million from $632.7 million in the prior-year quarter. Solid sales growth in the Connectivity and Sensors Group (CSG), High-Performance Analog (HPA) and Advance Cellular Group (ACG) business supported the revenue growth during the quarter. The company is at the forefront of global secular macro trends, including mobility, connectivity, electrification and datafication that are enabling new applications and new user experiences. The top line beat the Zacks Consensus Estimate of $925 million.
For fiscal 2024, total revenues were $3.8 billion compared with $3.6 billion in fiscal 2023.
HPA contributed $164.6 million in revenues, up from $133.1 million in the year-ago quarter largely driven by improved performance in the defense business. The company secured new product orders for several large domestic and international ground-based radar systems. The transition from legacy mechanical systems to active electronics scanning systems is driving growth in the defense and aerospace business.
In power management, the company continues to boast a strong presence in the consumer electronic sector. Healthy traction in automotive also cushioned the top line. Growing demand for DOCSIS 4.0 hybrid power doublers is supporting growth in the infrastructure business.
Revenues from CSG were $122.8 million compared with $81.9 million in the year-earlier quarter. The improvement is driven by the growing adoption of WI-FI 7 across operator, retail, enterprise and mobile segments. Solid ultra-wideband demand across various end markets, including automotive, laptop trackpads, wearables and smartphones, also supported the top line in this segment.
Net sales in ACG were $653.6 million, up 56.5% year over year, supported by strong content on multiple large customer platforms.
Other Details
Non-GAAP gross profit rose to $400.4 million from $261.2 million, with respective margins of 42.5% and 41.3%. Non-GAAP operating expenses increased to $253.2 million from $227.3 million a year ago, owing to higher investments in new product development. Non-GAAP operating income was $147.2 million, up from $33.8 million in the year-ago quarter.
Cash Flow & Liquidity
As of Mar 31, 2024, QRVO had $1.03 billion in cash and cash equivalents with $1.55 billion of long-term debt compared with respective tallies of $808.8 million and $2.05 billion in the prior-year period. The company generated $202.3 million in net cash from operating activities, with a free cash flow of $169.6 million. Qorvo repurchased $100 million worth of shares at an average price of $112 in the quarter.
Outlook
For first-quarter fiscal 2025, the company expects revenues at about $850 million (+/- $25 million). Non-GAAP gross margin is projected between 40% and 41%. Non-GAAP earnings per share are likely to be within 60-80 cents.
Qorvo expects modest revenue growth and margin improvement in fiscal 2025 year over year. Management is also undertaking various productivity enhancement initiatives across the enterprise to boost profitability.
Zacks Rank
Qorvo currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release first-quarter 2024 earnings on May 9. The Zacks Consensus Estimate for earnings is pegged at a loss of 80 cents per share, suggesting a decline of 715.4% from the year-ago reported figure.
Cogent carries a Zacks Tank #3 (Hold).
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release first-quarter 2024 earnings on May 9. The Zacks Consensus Estimate for earnings is pegged at $1.61 per share, indicating a growth of 15% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 7.3%. AKAM delivered an average earnings surprise of 6.5% in the last four reported quarters.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release second-quarter fiscal 2024 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share, implying a decline of 34.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 4.1%. KEYS delivered an average earnings surprise of 6.4% in the last four reported quarters.