Can Qorvo (QRVO) Beat Q4 Earnings On Organic Growth?
Zacks Investment Research | May 01, 2016 11:50PM ET
Leading semiconductor manufacturer Qorvo, Inc. (NASDAQ:QRVO) is scheduled to report fourth-quarter fiscal 2016 results after the closing bell on May 4. In the last reported quarter, adjusted earnings comfortably beat the Zacks Consensus Estimate by 8 cents. The company has beaten earnings estimates thrice in the last four trailing quarters with an average positive earnings surprise of 6.23%. Let’s see how things are shaping up for this announcement.
Key Factors in the Fourth Quarter
Qorvo is leveraging the core strengths of both the merged companies to rapidly translate research and development advances into large scale production. In addition, synergistic benefits from the merger is likely to increase profitability through economies of scale and mutual sharing of manufacturing expertise, research and development costs and adjustment of staffing expenses.
Qorvo has introduced highly integrated front-end solutions that simplify and accelerate the implementation of multimode, multi-band 4G smartphones and tablets. These new RF Fusion front-end solutions showcase Qorvo's ability to help leading OEMs to quickly launch their next-generation flagship devices. Qorvo's RF Flex solutions have been selected to support multiple upcoming leading 4G reference designs. RF Flex delivers best-in-class current consumption to enable superior device performance and leading-edge design flexibility to simplify regional customization.
Along with the third-quarter fiscal 2016 results, Qorvo offered a relatively bullish guidance for the fourth quarter as well. Revenues for fourth-quarter fiscal 2016 were expected to increase on a sequential basis to approximately $600 million, while earnings per share were expected in the range of 90-95 cents.
New product launches and customer design activity are likely to drive revenue growth in the to-be-reported quarter. The company is likely to expand its leadership in filter solutions owing to the release of the industry’s first six-inch TC-SAW wafers in Florida, six-inch SAW wafers in North Carolina and demonstration of its first eight-inch BAW wafers in Texas. During the quarter, the company also launched its High Power Plastic Packaged GaN MMICs which are expected to augment its revenues in the future.
Earnings Whispers
Our proven model shows that Qorvo is likely to beat earnings this quarter as it possesses the key components. A stock needs to have both a positive Zacks Investment Research
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