Needham & Company Cuts Price Target on Qorvo (QRVO) Following 1Q16 Results and Guidance
Needham & Company maintained a Buy rating on Qorvo Inc (NASDAQ: QRVO), and cut the price target to $82.00 (from $88.00), following 1Q16 results. QRVO reported revenue and non-GAAP EPS of $673.6MM/$1.09, ahead of consensus of $665.4MM/$1.06. QRVO guided F2Q16 revenues/NG EPS to $690-710MM/$1.05-1.15.
Analyst Quinn Bolton commented, "QRVO delivered strong F1Q16 results but issued weaker than expected F2Q16 guidance that can mainly be attributed to wireless infrastructure softness and excess smartphone inventory in China. Weak LTE infrastructure spending will be compounded by excess inventory of 4G handsets at certain Chinese OEMs. After strong Q/Q growth in F1Q16, Chinese handset OEMs now represent the largest portion of QRVO's overall revenues, replacing Apple (33% of revs in the quarter) as the top contributor. We believe the pause in LTE deployments and China inventory situation are short-term in nature and are confident the company's long term growth drivers remain intact. We continue to model a low-teen percentage increase in content in the next-gen iPhone 6S platform. Reducing estimates and PT to $82 but we would be buyers on weakness."
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Shares of Qorvo Inc closed at $70.47 yesterday.