Overview

* Qorvo ( QRVO ) fiscal Q2 revenue grows 1.1% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q2 beats consensus, reflecting operational improvements

* Company expects yr/yr revenue growth and margin expansion in December quarter

Outlook

* Company expects December quarter revenue of $985 mln, plus or minus $50 mln

* Company anticipates non-GAAP gross margin between 47% and 49%

* Qorvo ( QRVO ) projects non-GAAP EPS of $1.85, plus or minus 20 cents

Result Drivers

* SMARTPHONE RAMP - ACG supported major smartphone ramp for largest customer, contributing to revenue growth

* INFRASTRUCTURE GROWTH - HPA segment growth driven by D&A and infrastructure businesses, supported by power management ICs for smartwatch

* RESTRUCTURING FOR PROFITABILITY - CSG segment restructuring aimed at improving profitability and focusing on automotive, industrial, enterprise markets

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.05 $1.03

REVENUE bln bln (19

Analysts

)

Q2 Beat $2.22 $2.07

ADJUSTED (20

EPS Analysts

)

Q2 EPS $1.28

Q2 49.70%

ADJUSTED

GROSS

MARGIN

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 20 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the semiconductors peer group is "buy."

* Wall Street's median 12-month price target for Qorvo Inc ( QRVO ) is $101.18, about 6.2% above its October 31 closing price of $94.92

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)