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Qorvo (QRVO) to Report Q1 Earnings: What's in the Cards?

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Qorvo QRVO is set to release first-quarter fiscal 2022 results on Aug 4.

For the quarter, the company expects revenues between $1.065 billion and $1.095 billion. Non-GAAP earnings are projected to be $2.45 per share (at the mid-point of the revenue guidance).

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at $2.45 per share, unchanged over the past 30 days and indicating growth of 63.3% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $1.08 billion, which suggests an improvement of 37.2% from the year-ago quarter’s reported figure.

Qorvo, Inc. Price and EPS Surprise

Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. Price and EPS Surprise

Qorvo, Inc. price-eps-surprise | Qorvo, Inc. Quote

Qorvo’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 18.5%, on average.

Let’s see how things have shaped up for Qorvo prior to this announcement.

Factors to Consider

Qorvo’s fiscal first-quarter results are likely to reflect gains from increased demand for 4G and 5G mobile products utilized in flagship smartphones.

Strong demand for Qorvo’s mid-high band and ultra-high band front end modules, which have been powering 5G smartphone launches, is likely to have contributed to the company’s Mobile Products (“MP”) segment’s performance in the fiscal first quarter.

Qorvo expects MP revenues to be $810 million in the to-be-reported quarter.

Solid momentum in Bulk Acoustic Wave (“BAW”) filters, driven by extended shipments of low-band, mid-/high- and ultra-high-band modules, and BAW-based antenna-plexers that are witnessing accelerated adoption across leading smartphone OEMs, is expected to have driven top-line growth in fiscal first quarter.

Broad-based content gains across Wi-Fi 6 solutions, which are being implemented in leading tablets, smartphones, gateways, smart speakers, mesh networks and virtual reality headsets, are expected to have contributed to the fiscal first-quarter performance.

Momentum in deployment of Wi-Fi 6 solutions and robust 5G infrastructure market demand on improving buildout of 5G networks, and gains from rise in 5G base station deployments are likely to have acted as tailwinds.

Strong adoption of Qorvo’s Gallium nitride (GaN) amplifiers to support high-power applications and domestic airborne radars, and the deployment of Massive MIMO antennas are likely to have contributed to the Infrastructure and Defense segment’s revenue growth in the quarter under review.

Qorvo expects the IDP unit to contribute $270 million during the fiscal first quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Qorvo has an Earnings ESP of +0.06% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

Avnet AVT has an Earnings ESP of +9.82% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CyberArk Software CYBR has an Earnings ESP of +37.93% and a Zacks Rank #2.

Bruker BRKR has an Earnings ESP of +2.50% and a Zacks Rank #2.

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CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report

Qorvo, Inc. (QRVO) : Free Stock Analysis Report

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