Qorvo, Inc. QRVO is set to report first-quarter fiscal 2025 results on Jul 30, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 14.88%. It pulled off a trailing four-quarter earnings surprise of 50.96% on average.
The leading provider of radio frequency solutions is expected to have witnessed revenue growth backed by solid traction in the Connectivity and Sensors Group (CSG) and Advance Cellular Group (ACG).
Factors at Play
During the quarter, Qorvo introduced a cutting-edge suite of high-power MMIC amplifiers named QPA1314, QPA0016 and QPA0015. The amplifiers are engineered to bolster the capabilities of Ku-Band Satellite communications terminals and match the increasing demand for high-speed data communications in defense and aerospace use cases.
Qorvo also launched three new highly integrated RF multi-chip modules: QPF5001, QPM2101 and QPB1029. The compact size, superior performance, lower noise and reduced power consumption make the new modules ideal for advanced radar applications. These latest offerings expanded Qorvo’s portfolio of connectivity and power solutions and are likely to have improved its prospects in the aerospace and defense business.
In the quarter under review, the company introduced the industry’s first single-chip variable inverse cable equalizer, the QPC7330. The solution is designed to support CATV application developers by simplifying the upgrading process to DOCSIS 4.0 standard. Qorvo also unveiled the industry’s first 4-milliohm silicon carbide junction field effect transistor in a compact TOLL package. The solution is engineered for circuit protection, specifically in solid-state circuit breakers, delivering low resistance, impressive thermal performance and reliability. The device facilitates the transition from legacy electromechanical circuit breakers to semiconductor-based solid-state circuit breakers. These developments are likely to have supported the top line during the quarter.
Per the Zacks Consensus Estimate, net sales in High-Performance Analog are expected to be $136.21 million in the first quarter of fiscal 2025, implying a decline from $139.69 million in the year-earlier quarter. Revenues from ACG are projected at $592.33 million, suggesting solid growth from $412.21 million reported in the year-ago quarter. CSG is expected to generate $122.63 million in revenues, indicating an improvement from $99.26 million in the year-ago quarter.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $851 million, indicating 30.71% year-over-year growth. The consensus mark for earnings is pegged at 71 cents per share. It reported earnings of 34 cents per share in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively 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 71 cents. 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 carries 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:
Pinterest PINS is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation SIMO is +4.89%, and it has a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Arista Networks, Inc. ANET is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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.
