:max_bytes(150000):strip_icc()/GettyImages-1233091795-889160408fc347c58463d985f620106e.jpg)
Key Takeaways
- Qorvo shares gained in pre-market trading Thursday after the wireless chipmaker topped Wall Street’s fiscal fourth-quarter earnings and sales guidance due to a recovery in Android mobile handsets.
- The company also said it plans to acquire Boston-based integrated circuits supplier Anokiwave, with the deal expected to close in the March quarter.
- Qorvo shares trade within a 25-point range, potentially consolidating before retesting the pattern’s upper trendline around $113.50.
Qorvo, Inc.
Source: TradingView.com.
Qorvo (QRVO) shares added more than 5% in premarket trading Thursday after the wireless chipmaker’s fiscal fourth-quarter earnings and sales guidance exceeded analysts’ expectations due to a rebound in the smartphone market. The Greensboro, North Carolina-based company expects to earn an adjusted profit of $1.20 per share in the current quarter on revenue of $925 million, plus or minus $25 million, whereas Wall Street had expected $1.17 a share on net sales of $913.1 million.
The company’s upbeat outlook centers around a recovery in Android mobile handsets as users upgrade to 5G-compatible devices. “We are seeing incremental improvement in end market demand in the Android ecosystem, and we expect to achieve year-over-year revenue growth in all of Qorvo’s operating segments in the March quarter,” Qorvo CEO Bob Bruggeworth said in the company’s earnings statement.”
During the fiscal third quarter, the chip manufacturer’s top line came in at $1.07 billion, increasing 44% from a the prior year and surpassing the consensus figure of $1 billion. The bottom line also topped expectations, coming in at $2.10 per share compared to forecasts of $1.66 a share.
In a separate statement on Wednesday, the company said it plans to acquire Boston-based integrated circuits supplier Anokiwave to continue providing chip solutions for the defense and communication markets, including 5G applications. The company expects the transaction to close in the March quarter.
Qorvo shares have traded within a 25-point range over the past 12 months, with several failed breakout attempts. After a recent test of the pattern’s top trendline, the price has retraced to the 200-day moving average, with volume increasing into the company’s earnings announcement. If the stock can close above the 50-day moving average today, keep an eye out for another test of the range’s upper trendline around $113.50.
The stock was up 5.5% at $105.20 in pre-market trading about two hours before the opening bell. ET. As of Wednesday’s close, the stock had lost about 12% over the past year.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.