Qorvo (QRVO) Cites Weaker Than Foretasted Mobile Demand in 3Q - Needham & Company Maintains Buy

Needham & Company maintained a Buy rating on Qorvo Inc (NASDAQ: QRVO), and cut the price target to $55.00 (from $64.00), following the company's negatively pre-announced 3Q earnings report. QRVO meaningfully revised lower its revenue guidance for F3Q16 and guided F4Q16 revenue to be approximately flat sequentially. Citing weaker than forecast customer demand in its Mobile Products segment, management expects F3Q16 revenue will be ~$620MM, well below prior guidance of $720MM- $730MM.

Analyst Quinn Bolton commented, "Citing weaker than forecast customer demand in its Mobile Products segment, QRVO meaningfully revised lower its revenue guidance for F3Q16 and guided F4Q16 revenue to be approximately flat sequentially. We attribute the vast majority of the nearly $100MM shortfall to our estimates, which were already slightly below original guidance, primarily to reduced manufacturing builds at Apple and to a lesser degree continued inventory reductions in the China market. We have reduced our forward estimates and PT to $55 from $64. However, as valuation remains compelling and as we believe the impact of reduced iPhone units is largely reflected in the stock, we maintain our Buy rating."

For an analyst ratings summary and ratings history on Qorvo Inc click here. For more ratings news on Qorvo Inc click here.

Shares of Qorvo Inc closed at $45.64 yesterday.

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