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.
Here is Why You Should Dump Qorvo (QRVO) From Your Portfolio
Read MoreHide Full Article
On Dec 13, Qorvo Inc. (QRVO - Free Report) was downgraded to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
The downgrade can primarily be attributed to Qorvo’s unimpressive revenue guidance for the next two quarters.
Management cited delayed product cycle at its largest customer to be one of the major reasons that will hurt Mobile Products (MP) revenues in the current quarter. Moreover, fourth-quarter fiscal 2018 revenues are projected to decline sequentially.
Additionally, Qorvo anticipates gross margin to be flat sequentially in the current quarter, primarily due to unfavorable product mix.
Qorvo’s stock has gained 28.4% year to date, slightly outperforming the 23.7% rally of its industry.
Mix Improvement Not Imminent
We note that consumer preference for mid-tier phones, which have lower dollar content, in India and China are affecting Qorvo’s growth trajectory. Management doesn’t expect 50% gross margin, while exiting fiscal 2018, primarily due to the aforementioned reason.
However, Qorvo anticipates gross margin expansion to restart in fourth-quarter fiscal 2018 and continue throughout the next fiscal driven by improving mix, ongoing productivity efforts and increasing fab utilization.
Qorvo expects revenues to decline less than seasonally over the December-March time frame. In the second half, management expects double-digit year-over-year growth, with gains on new mobile platforms and continued strong IDP growth.
Operating expenses in dollar terms are also expected to decline from fiscal 2017 level.
Estimates Remain Steady
The Zacks Consensus Estimate for fiscal 2018 and fiscal 2019 has been steady at $5.47 and $6.43, respectively.
Moreover, the Zacks Consensus Estimate for revenues is currently pegged at $3.10 billion for fiscal 2018 and $3.37 billion for fiscal 2019.
Long term earnings growth for Intel, NVIDIA and Texas Instruments is currently pegged at 8.42%, 10.25% and 9.60%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Here is Why You Should Dump Qorvo (QRVO) From Your Portfolio
On Dec 13, Qorvo Inc. (QRVO - Free Report) was downgraded to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
The downgrade can primarily be attributed to Qorvo’s unimpressive revenue guidance for the next two quarters.
Management cited delayed product cycle at its largest customer to be one of the major reasons that will hurt Mobile Products (MP) revenues in the current quarter. Moreover, fourth-quarter fiscal 2018 revenues are projected to decline sequentially.
Additionally, Qorvo anticipates gross margin to be flat sequentially in the current quarter, primarily due to unfavorable product mix.
Qorvo’s stock has gained 28.4% year to date, slightly outperforming the 23.7% rally of its industry.
Mix Improvement Not Imminent
We note that consumer preference for mid-tier phones, which have lower dollar content, in India and China are affecting Qorvo’s growth trajectory. Management doesn’t expect 50% gross margin, while exiting fiscal 2018, primarily due to the aforementioned reason.
However, Qorvo anticipates gross margin expansion to restart in fourth-quarter fiscal 2018 and continue throughout the next fiscal driven by improving mix, ongoing productivity efforts and increasing fab utilization.
Qorvo expects revenues to decline less than seasonally over the December-March time frame. In the second half, management expects double-digit year-over-year growth, with gains on new mobile platforms and continued strong IDP growth.
Operating expenses in dollar terms are also expected to decline from fiscal 2017 level.
Estimates Remain Steady
The Zacks Consensus Estimate for fiscal 2018 and fiscal 2019 has been steady at $5.47 and $6.43, respectively.
Moreover, the Zacks Consensus Estimate for revenues is currently pegged at $3.10 billion for fiscal 2018 and $3.37 billion for fiscal 2019.
Other Stocks to Consider
Intel Corporation (INTC - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Texas Instruments (TXN - Free Report) are stocks worth considering in the broader technology sector. While Intel and NVIDIA sport a Zacks Rank #1 (Strong Buy), Texas Instruments has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long term earnings growth for Intel, NVIDIA and Texas Instruments is currently pegged at 8.42%, 10.25% and 9.60%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>