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Key Takeaways
- Apple semiconductor supplier Qorvo provided softer-than-expected guidance for the current quarter as mobile phone sales slide.
- Qorvo said it sees “modest” revenue growth in the coming year.
- The news about weakened outlook offset Qorvo’s better-than-anticipated profit and sales reported for its fiscal 2024 fourth quarter.
Qorvo (QRVO) shares slumped Thursday after the maker of radio frequency chips and a key supplier for Apple (AAPL) provided weaker-than-expected current-quarter guidance in response to declining mobile phone demand.
Qorvo said Wednesday that it anticipates its fiscal 2025 first-quarter adjusted earnings per share (EPS) will fall in a range of 60 cents to 80 cents, and revenue of about $850 million, plus or minus $25 million. Both were below estimates.
CFO Grant Brown explained that, right now, “flagship smartphone ramps and large defense programs are down seasonally,” and added that Qorvo sees just “modest revenue growth and margin improvement” for the full year.
Softness in the company’s sales may signal concerns about Apple, although the major customer of Qorvo wasn’t mentioned in its most recent earnings release. According to one report, nearly half of Qorvo’s revenue comes from the iPhone maker. Apple reports its quarterly earnings after the close of trading Thursday.
The outlook came as Qorvo reported fiscal 2024 fourth-quarter results that exceeded forecasts, with adjusted EPS of $1.39, and revenue soaring 48.7% to $941.0 million.
Thursday’s 14.45% drop to $95.72 by the last hour of trading helped send shares of Qorvo down 12% year-to-date.
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