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Can Qorvo (QRVO) Beat Earnings Estimates Yet Again in Q1?
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Leading semiconductor manufacturer Qorvo, Inc. (QRVO - Free Report) is scheduled to report first-quarter fiscal 2017 results after the closing bell on Aug 2. In the last reported quarter, adjusted earnings comfortably beat the Zacks Consensus Estimate by 16 cents. The company has beaten earnings estimates thrice in the four trailing quarters with an average positive earnings surprise of 7.22%. Let’s see how things are shaping up for this announcement.
Key Factors in the First Quarter
New product launches and customer design activity are likely to drive the company’s revenue growth in the to-be-reported quarter. Qorvo has introduced highly integrated front-end solutions that simplify and accelerate the implementation of multimode, multi-band 4G smartphones and tablets. These new RF Fusion front-end solutions showcase Qorvo's ability to help leading OEMs to quickly launch their next-generation flagship devices. Qorvo's RF Flex solutions have been selected to support multiple upcoming leading 4G reference designs. RF Flex delivers best-in-class current consumption to enable superior device performance and leading-edge design flexibility to simplify regional customization.
Qorvo offers a complete product portfolio, targeting the highest growth segments of its market including filters, switches and tuners. The company is well-positioned for the highest growth opportunities by leveraging its diversified product portfolio, systems-level expertise, R&D and manufacturing scale and internal assembly and test capabilities. The company is expected to improve its financial performance as it aims to invest in building a wider technology, supporting better-than-industry growth, greater diversification, a richer mix of new products and an expanding gross margin.
However, changes in business and economic conditions, including downturns in the semiconductor industry and the overall economy usually impact the company’s profitability. With fluctuations in the demand pattern due to macroeconomic conditions, the revenues of the company are likely to be affected.
In addition, Qorvo operates in a competitive landscape that is becoming more complex with low barriers to entry. As each player strives to have a greater pie in the market, the battle gets murkier. The increased competition is exerting pricing pressure, which remains a matter of concern for the company.
Earnings Whispers
Our proven model does not conclusively show that Qorvo is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a successful earnings beat. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is currently pegged at 0.00%.
Zacks Rank: Qorvo’s Zacks Rank #3 when combined with 0.00% ESP makes an earnings beat uncertain. We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Sun Communities Inc. (SUI - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #2.
National Health Investors Inc. (NHI - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2.
CDK Global Inc. has an earnings ESP of +4.26% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Can Qorvo (QRVO) Beat Earnings Estimates Yet Again in Q1?
Leading semiconductor manufacturer Qorvo, Inc. (QRVO - Free Report) is scheduled to report first-quarter fiscal 2017 results after the closing bell on Aug 2. In the last reported quarter, adjusted earnings comfortably beat the Zacks Consensus Estimate by 16 cents. The company has beaten earnings estimates thrice in the four trailing quarters with an average positive earnings surprise of 7.22%. Let’s see how things are shaping up for this announcement.
Key Factors in the First Quarter
New product launches and customer design activity are likely to drive the company’s revenue growth in the to-be-reported quarter. Qorvo has introduced highly integrated front-end solutions that simplify and accelerate the implementation of multimode, multi-band 4G smartphones and tablets. These new RF Fusion front-end solutions showcase Qorvo's ability to help leading OEMs to quickly launch their next-generation flagship devices. Qorvo's RF Flex solutions have been selected to support multiple upcoming leading 4G reference designs. RF Flex delivers best-in-class current consumption to enable superior device performance and leading-edge design flexibility to simplify regional customization.
Qorvo offers a complete product portfolio, targeting the highest growth segments of its market including filters, switches and tuners. The company is well-positioned for the highest growth opportunities by leveraging its diversified product portfolio, systems-level expertise, R&D and manufacturing scale and internal assembly and test capabilities. The company is expected to improve its financial performance as it aims to invest in building a wider technology, supporting better-than-industry growth, greater diversification, a richer mix of new products and an expanding gross margin.
QORVO INC Price and EPS Surprise
QORVO INC Price and EPS Surprise | QORVO INC Quote
However, changes in business and economic conditions, including downturns in the semiconductor industry and the overall economy usually impact the company’s profitability. With fluctuations in the demand pattern due to macroeconomic conditions, the revenues of the company are likely to be affected.
In addition, Qorvo operates in a competitive landscape that is becoming more complex with low barriers to entry. As each player strives to have a greater pie in the market, the battle gets murkier. The increased competition is exerting pricing pressure, which remains a matter of concern for the company.
Earnings Whispers
Our proven model does not conclusively show that Qorvo is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a successful earnings beat. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is currently pegged at 0.00%.
Zacks Rank: Qorvo’s Zacks Rank #3 when combined with 0.00% ESP makes an earnings beat uncertain. We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Sun Communities Inc. (SUI - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #2.
National Health Investors Inc. (NHI - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2.
CDK Global Inc. has an earnings ESP of +4.26% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>