Qorvo (QRVO) Reported Q2 Beat, But Stock Plunges 7% on Worse Than Expected Q3 Guidance
Qorvo (NASDAQ: QRVO) shares were trading more than 7% lower after-hours following the company’s reported Q2 beat, but worse-than-expected Q3 guidance.
The quarterly EPS came in at $3.42 (vs. Street’s $3.25) and revenue was $1.26 billion (vs. Street’s $1.25 billion).
The company provided a disappointing Q3 outlook, expecting an EPS of $2.75 (vs. Street’s $3.26) and a revenue of $1.09-1.12 billion (vs. Street’s $1.25 billion). According to Mark Murphy, CFO of Qorvo, Q3 revenue is expected to decrease sequentially due to the ongoing supply challenges and other factors impacting global smartphone demand. Murphy said that the company expects these challenges to moderate in Q4, anticipating the full 2022-year to grow 15% with a gross margin over 52%.
The company also announced the acquisition of United Silicon Carbide, a leading manufacturer of silicon carbide (SiC) power semiconductors, which will expand the company’s reach into the fast-growing markets for electric vehicles (EVs), industrial power, circuit protection, renewables and data center power.