Qorvo Sidesteps Apple iPhone Drag To Crush Fiscal Q4 Views

By | May 4, 2016

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Qorvo ( QRVO ) sidestepped Apple ‘s ( AAPL ) iPhone drag late Wednesday with a Wall Street-crushing fiscal Q4 earnings report, and with guidance that — unlike rival Skyworks Solutions ( SWKS ) — topped consensus expectations. In after-hours trading, Qorvo stock rocketed more than 8% after closing down 1.2% in Wednesday’s regular session, and leading shares of radio-frequency rivals Skyworks and Broadcom ( AVGO ), whose stocks both rose a fraction. For its fiscal Q4 ended April 2, Qorvo reported $608.1 million in sales and $1.04 earnings per share minus items, down a respective 4% and 6% vs. the year-earlier quarter, but topping analysts’ model for $599.2 million and 92 cents. Three months ago, Qorvo guided to $600 million and 90-95 cents. Qorvo ended fiscal 2016 with $2.61 billion in sales, up 53%, and $4.38 EPS ex items, down 8%. Sales edged the consensus of 20 analysts polled by Thomson Reuters for $2.6 billion, but EPS topped by 12 cents. Current-quarter guidance for $650 million in sales and $1.05 EPS minus items would be down 6% and 12% year over year, but that’s ahead of analyst expectations for $628.6 million and 96 cents. Last week, Skyworks reported fiscal Q2 metrics that topped views, but shares crashed 6.9% on Q3 sales guidance that missed by about $50 million. Analysts called for a similar report from Qorvo, which is more heavily exposed to Apple’s iPhone product cycle. Apple iPhone sales have slowed — for the first time — ahead of the iPhone 7 release expected in September. But all three RF suppliers will ramp up on the iPhone 7, Goldman Sachs analyst Toshiya Hari says. Scalper1 News

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