Canaccord Genuity Maintains Buy After Qorvo's (QRVO) Miss
Canaccord Genuity analyst, Michael Walkley, maintains his Buy rating after Qorvo Inc (NASDAQ: QRVO) big miss but drops his price target to $62 from $77.
Qorvo pre-announced much lower than anticipated preliminary Q3/F'16 results due to weaker sales in its mobile products division. Reduced orders from Apple near the end of the December quarter combined with ongoing weak trends with other OEMs contributed to the $100M plus December quarter revenue miss. Qorvo management anticipates December quarter revenue of approximately $620M versus prior guidance of $720M-$730M (flat sequentially).
However, Qorvo has a broad RFIC portfolio for the mobile device market and is well positioned to benefit from secular RFIC TAM growth trends. The company also has an industry-leading non-handset-related RFIC portfolio addressing the higher-margin defense & aerospace and networks infrastructure markets.
Due to decreased iPhone and overall high-end smartphone estimates, the analyst reduced F'16/F'17/F'18 estimates from $4.46/$5.61/$6.52 to $4.15/$5.23/ $5.73.
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Shares of Qorvo Inc closed at $45.64 yesterday.