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Qorvo expects strong Q4 on hopes of rebound in smartphone market

(Reuters) - Wireless connectivity chipmaker Qorvo forecast fourth-quarter revenue and profit above Wall Street estimates on Wednesday, anticipating a rebound in the smartphone market.

Shares of Greensboro, North Carolina-based company rose more than 5% after the bell.

Qorvo primarily supplies radio frequency solutions to Apple, its largest customer accounting for about 37% of its total revenue in fiscal 2023, and world's largest memory chip maker Samsung Electronics.

A recovery in mobile handset and stabilizing Android markets have driven demand for products offered by companies such as Qorvo and its rival Skyworks Solutions as users migrate to 5G.

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Samsung said on Tuesday its mobile devices business booked a 2.73 trillion won ($2.05 billion) operating profit in the fourth quarter, up from 1.7 trillion won a year earlier on stronger demand for pricier smartphones.

Moreover, Apple ended Samsung's 12-year run as the world's top seller of smartphones in 2023, snaring a 20% market share as demand for premium phones outpaced those of more affordable models, according to a report from International Data Corp.

Qorvo expects fourth-quarter revenue of about $925 million, plus or minus $25 million compared with analysts' average estimate of $913.1 million, according to LSEG data.

The company expects adjusted profit of about $1.20 per share for fourth-quarter ending in March, compared with analysts' average estimate of $1.17 per share.

It posted revenue of $ 1.07 billion for the third-quarter ended Dec. 30, while adjusted profit came in at $2.10 per share compared with analysts' estimate for revenue of $1 billion and adjusted profit of $1.66 per share.

Separately, Qorvo said it would acquire Boston, Massachusetts-based Anokiwave, which provides chips for wireless communication. The transaction is expected to close in March quarter.

($1 = 1,333.8100 won)

(Reporting by Jaspreet Singh in Bengaluru)