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Qorvo Poised for Long-Term Growth with a Healthy Demand

On Nov 20, Zacks Investment Research updated the research report on leading semiconductor manufacturer Qorvo, Inc.QRVO .

Qorvo reported healthy second-quarter fiscal 2016 results as adjusted earnings comfortably beat the Zacks Consensus Estimate on a nearly two-fold jump in revenues. Moving forward, Qorvo is likely to gain a competitive advantage in the industry through economies of scale and cost efficiency by mutual sharing of resources of the merged entities.

Qorvo is leveraging the industry's most comprehensive product portfolio, advanced packaging technologies, and system-level expertise to quickly introduce 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 more 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 the best-in-class current consumption to enable superior device performance and leading-edge design flexibility to simplify regional customization. All these factors bode well for the long-term growth of the company.

Qorvo offers the most complete product portfolio, targeting the highest growth segments of its market including filters, switches and tuners. The company is well-positioned to win some of the industry's 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.

New product launches and customer design activity are likely to generate revenue growth throughout calendar year 2015 and 2016. Qorvo has excellent growth opportunities in China as the company has entered the BAW-based multiplexer market with a family of quadplexers for smartphones supporting carrier aggregation in China and Europe. The company expects secured content expansion opportunities on marquee smartphones launching in calendar 2016 and 2017.

Qorvo presently carries a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Applied Micro Circuits Corporation AMCC , NVE Corp. NVEC and FormFactor Inc. FORM , each carrying a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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