We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qorvo (QRVO) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Qorvo Inc. (QRVO - Free Report) is set to release fourth-quarter fiscal 2017 earnings on May 3. Notably, the company has beaten the Zacks Consensus Estimate in the two of the trailing four quarters, with an average positive surprise of 7.18%.
In the last quarter, the company reported a positive earnings surprise of 15.09%. Earnings (excluding stock-based compensation) were $1.35 per share, which surged 31.1% from the year-ago quarter and was in line with the top end of the company’s guided range of $1.15–$1.35 per share.
Adjusted revenues improved 33.2% year over year to $825.4 million, which was slightly ahead of the Zacks Consensus Estimate of $823 million. Further, the figure was within management’s guided range of $800–$840 million.
However, fourth-quarter guidance was disappointing. Qorvo’s revenues and earnings are forecasted to decline sequentially due to delayed flagship smartphone launches from two leading customers in China and a Tier 1 customer in Korea.
Nevertheless, we note that Qorvo has outperformed the Zacks Semiconductor Radio Frequency industry on a year-to-date basis. While the stock has returned 29.1%, the industry gained 28.5%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Qorvo expects non-GAAP revenues in fourth-quarter fiscal 2017 to be approximately $610–$650 million. The company anticipates gross margin of approximately 46%, which is an improvement driven by positive seasonal mix effects as well as ongoing productivity and quality efforts.
Management expects operating expenses to increase less than 5% sequentially on development program timing and seasonal payroll effects. Earnings are projected to be in the range of 70–90 cents per share.
Qorvo’s ability to meet the growing requirements of customers through the introduction of innovative products is likely to augur well for the results. However, higher research & development costs can impact profitability in the near term.
Earnings Whispers
Our proven model does not conclusively show that Qorvo is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Qorvo’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 71 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Qorvo carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
DragonWave with an Earnings ESP of +8.82% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Impinj (PI - Free Report) with an Earnings ESP of +50% and a Zacks Rank #2.
eGain Corp (EGAN - Free Report) with an Earnings ESP of +50% and a Zacks Rank #2.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
Image: Bigstock
Qorvo (QRVO) to Report Q4 Earnings: What's in the Cards?
Qorvo Inc. (QRVO - Free Report) is set to release fourth-quarter fiscal 2017 earnings on May 3. Notably, the company has beaten the Zacks Consensus Estimate in the two of the trailing four quarters, with an average positive surprise of 7.18%.
In the last quarter, the company reported a positive earnings surprise of 15.09%. Earnings (excluding stock-based compensation) were $1.35 per share, which surged 31.1% from the year-ago quarter and was in line with the top end of the company’s guided range of $1.15–$1.35 per share.
Adjusted revenues improved 33.2% year over year to $825.4 million, which was slightly ahead of the Zacks Consensus Estimate of $823 million. Further, the figure was within management’s guided range of $800–$840 million.
Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. Price and EPS Surprise | Qorvo, Inc. Quote
However, fourth-quarter guidance was disappointing. Qorvo’s revenues and earnings are forecasted to decline sequentially due to delayed flagship smartphone launches from two leading customers in China and a Tier 1 customer in Korea.
Nevertheless, we note that Qorvo has outperformed the Zacks Semiconductor Radio Frequency industry on a year-to-date basis. While the stock has returned 29.1%, the industry gained 28.5%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Qorvo expects non-GAAP revenues in fourth-quarter fiscal 2017 to be approximately $610–$650 million. The company anticipates gross margin of approximately 46%, which is an improvement driven by positive seasonal mix effects as well as ongoing productivity and quality efforts.
Management expects operating expenses to increase less than 5% sequentially on development program timing and seasonal payroll effects. Earnings are projected to be in the range of 70–90 cents per share.
Qorvo’s ability to meet the growing requirements of customers through the introduction of innovative products is likely to augur well for the results. However, higher research & development costs can impact profitability in the near term.
Earnings Whispers
Our proven model does not conclusively show that Qorvo is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Qorvo’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 71 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Qorvo carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
DragonWave with an Earnings ESP of +8.82% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Impinj (PI - Free Report) with an Earnings ESP of +50% and a Zacks Rank #2.
eGain Corp (EGAN - Free Report) with an Earnings ESP of +50% and a Zacks Rank #2.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.