What To Expect From Qorvo’s (QRVO) Q3 Earnings

Communications chips maker Qorvo (NASDAQ: QRVO) will be reporting results this Monday after market close. Here’s what to look for.

Qorvo beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $818.8 million, down 7.7% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Qorvo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Qorvo’s revenue to be flat year on year at $1.04 billion, improving from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.11 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qorvo has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.1% on average.

Looking at Qorvo’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 2.8%, beating analysts’ expectations by 3.7%, and Penguin Solutions reported revenues up 8.6%, falling short of estimates by 1.3%. Intel’s stock price was unchanged after the resultswhile Penguin Solutions was down 15.9%.

Read our full analysis of Intel’s results here and Penguin Solutions’s results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 5.6% on average over the last month. Qorvo is up 1.7% during the same time and is heading into earnings with an average analyst price target of $100.52 (compared to the current share price of $95.05).

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