Qorvo Inc

QRVO

Equity

ISIN US74736K1016 / Valor 25588586

NASDAQ (2025-03-11)

USD 71.06-4.08%

Qorvo Inc
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About company

Qorvo Inc is a leading provider in the field of radio frequency (RF) solutions, catering to a diverse range of markets including mobile communications, infrastructure, the Internet of Things (IoT), defense/aerospace, and power management. The company specializes in developing and delivering advanced RF technologies that play a crucial role in enabling connectivity, protection, and power efficiency across various applications. By focusing on the core aspects of RF technology, Qorvo addresses the growing demand for high-performance, integrated solutions in the rapidly evolving tech landscape. Their product portfolio supports a wide array of applications, from enhancing mobile device connectivity to improving infrastructure and advancing capabilities in defense and aerospace sectors, as well as optimizing power management systems.

Summarized from source with an LLMView SourceSector: Technology

Revenue Performance

Qorvo Inc. reported revenue of $1.047 billion for the fiscal 2025 second quarter, which ended on September 28, 2024. This represents a sequential increase from the previous quarter but a year-over-year decline compared to the same quarter in fiscal 2024. The company attributes this performance to its successful support of a major customer's smartphone ramp and growth in its power management business.

Profitability Metrics

On a GAAP basis, Qorvo Inc. recorded an operating income of $9.7 million for the fiscal 2025 second quarter. However, the company reported a net loss, with a loss per share of $0.18. On a non-GAAP basis, the operating income was significantly higher at $212.2 million, with diluted earnings per share of $1.88, reflecting adjustments for various expenses and charges.

Segment Performance

Qorvo Inc.'s High Performance Analog (HPA) segment achieved revenue of $148.3 million, while the Connectivity and Sensing Group (CSG) reported $146.8 million in revenue for the fiscal 2025 second quarter. The Advanced Cellular Group (ACG) generated $751.4 million in revenue, showing a sequential increase but a year-over-year decline. The company noted growth in its CSG segment, particularly in Wi-Fi applications and automotive solutions.

Financial Outlook

Looking ahead, Qorvo Inc. expects revenue for the December 2024 quarter to be approximately $900 million, plus or minus $25 million. The company anticipates a non-GAAP gross margin of around 45% and non-GAAP diluted earnings per share between $1.10 and $1.30. Qorvo is taking measures to address unfavorable market mix shifts, including factory consolidation and operating expense reductions.

Market Challenges and Strategy

Qorvo Inc. is experiencing challenges in the smartphone market, particularly with a shift in mix from mid-tier to entry-tier 5G Android smartphones. The company does not expect this trend to reverse in the near term and is focusing on aligning its operations with long-term profitability goals. This includes strategic investments in diverse businesses such as automotive solutions and ultra-wideband systems on chips (SoCs).

Summarized from source with an LLMView Source

Key figures

-39.5%1Y

-42.5%3Y

-20.4%5Y

Performance

51.4%1Y

42.9%3Y

45.6%5Y

Volatility