Qorvo Q1 revenue and adjusted EPS beat estimates on margin gains

Overview

• US semiconductor solutions provider's fiscal Q1 revenue beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company discontinued forward guidance due to pending Skyworks transaction

Outlook

• Qorvo expects fiscal 2027 non-GAAP gross margin above 50%

• Company expects fiscal 2027 non-GAAP diluted EPS above $7.00

• Qorvo has discontinued conference calls and forward-looking guidance due to pending merger

Result Drivers

• SEGMENT GROWTH - Co said double-digit year-over-year revenue growth in Defense Aerospace, infrastructure, and power segments supported results

• BUSINESS MIX - Co attributed margin and profitability gains to improved business mix within and across operating segments and reduced capital intensity

• MARGIN EXPANSION - Non-GAAP gross margin expanded 880 basis points year-over-year to 52.8%, attributed to structural enhancements and business mix improvements

Company press release: ID:nGNX60RgG1

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 17 "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 is $87.22, about 2.8% below its July 27 closing price of $89.76

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

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)