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Will Solid Revenue Growth Boost Qorvo's (QRVO) Q3 Earnings?
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Qorvo, Inc. (QRVO - Free Report) is set to report third-quarter fiscal 2024 results on Jan 31, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 35.03%. It pulled off a trailing four-quarter earnings surprise of 73.89% on average.
The leading provider of radio frequency solutions is expected to have witnessed top-line growth in the quarter despite macroeconomic volatility and stiff competition.
Factors at Play
In the fiscal third quarter, Qorvo partnered with Luxshare Precision Industry Co., Ltd., a global advanced contract manufacturer, wherein Luxshare will assemble and test products for Qorvo in Beijing and Dezhou, China. Per the agreement, Luxshare will take over the operations and assets of each factory, encompassing real estate, manufacturing facilities, equipment and the existing workforce to provide Qorvo with world-class production capacity while expanding its offerings and capabilities seamlessly and flexibly. This is likely to have positively impacted QRVO’s revenues in the quarter.
During the to-be-reported quarter, Qorvo launched QSPICE – a new generation of circuit simulation software that provides power and analog designers significantly higher levels of design productivity through improved simulation speed, functionality and reliability.
QSPICE will facilitate designers to simulate complex digital circuits and algorithms with its unique combination of modern schematic capture and fast mixed-mode simulation features. This, in turn, is likely to make QSPICE an ideal tool to solve the increasingly complex hardware and software challenges faced by system designers. Such innovative products are likely to have resulted in incremental revenues in the fiscal third quarter.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,004 million, indicating an increase from $743 million reported in the prior-year quarter. The consensus mark for earnings is pegged at $1.65 per share. It reported earnings of 75 cents in the year-ago quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Qorvo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.65. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Qualcomm Inc. (QCOM - Free Report) has an Earnings ESP of +3.45% and carries a Zacks Rank of 3. The company is set to report quarterly numbers on Jan 31.
Silicon Motion Technology (SIMO - Free Report) has an Earnings ESP of +4.92% and carries a Zacks Rank of 1. The company is set to report quarterly numbers on Feb 6.
Image: Bigstock
Will Solid Revenue Growth Boost Qorvo's (QRVO) Q3 Earnings?
Qorvo, Inc. (QRVO - Free Report) is set to report third-quarter fiscal 2024 results on Jan 31, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 35.03%. It pulled off a trailing four-quarter earnings surprise of 73.89% on average.
The leading provider of radio frequency solutions is expected to have witnessed top-line growth in the quarter despite macroeconomic volatility and stiff competition.
Factors at Play
In the fiscal third quarter, Qorvo partnered with Luxshare Precision Industry Co., Ltd., a global advanced contract manufacturer, wherein Luxshare will assemble and test products for Qorvo in Beijing and Dezhou, China. Per the agreement, Luxshare will take over the operations and assets of each factory, encompassing real estate, manufacturing facilities, equipment and the existing workforce to provide Qorvo with world-class production capacity while expanding its offerings and capabilities seamlessly and flexibly. This is likely to have positively impacted QRVO’s revenues in the quarter.
During the to-be-reported quarter, Qorvo launched QSPICE – a new generation of circuit simulation software that provides power and analog designers significantly higher levels of design productivity through improved simulation speed, functionality and reliability.
QSPICE will facilitate designers to simulate complex digital circuits and algorithms with its unique combination of modern schematic capture and fast mixed-mode simulation features. This, in turn, is likely to make QSPICE an ideal tool to solve the increasingly complex hardware and software challenges faced by system designers. Such innovative products are likely to have resulted in incremental revenues in the fiscal third quarter.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,004 million, indicating an increase from $743 million reported in the prior-year quarter. The consensus mark for earnings is pegged at $1.65 per share. It reported earnings of 75 cents in the year-ago quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Qorvo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.65. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. price-eps-surprise | Qorvo, Inc. Quote
Zacks Rank: Qorvo currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:
NVIDIA Corporation (NVDA - Free Report) is set to release quarterly numbers on Feb 21. It has an Earnings ESP of +3.78% and sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Qualcomm Inc. (QCOM - Free Report) has an Earnings ESP of +3.45% and carries a Zacks Rank of 3. The company is set to report quarterly numbers on Jan 31.
Silicon Motion Technology (SIMO - Free Report) has an Earnings ESP of +4.92% and carries a Zacks Rank of 1. The company is set to report quarterly numbers on Feb 6.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.