Yahoo Finance Will Top-Line Contraction Affect Qorvo (QRVO) Q1 Earnings?
Qorvo, Inc. QRVO is scheduled to report first-quarter fiscal 2023 results on Aug 3, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 6.1%. It pulled off a trailing four-quarter earnings surprise of 8.8%, on average.
The Greensboro, NC-based company is expected to have recorded year-over-year lower revenues due to the challenging macroeconomic environment.
Factors at Play
During the quarter, Qorvo introduced a combined solution for addressing the critical challenges of 32x32 and 64x64 massive MIMO radios. This solution reduces the radio's weight and volume by leveraging high-efficiency power amplifiers, making massive MIMO radios more practical while saving electricity consumption to improve the overall power efficiency.
Qorvo also launched a 20W GaN-on-SiC power amplifier for defense and commercial satellite applications, including low earth orbit constellations. The product reportedly offers twice the power of competing power amplifiers for wide bandwidth multi-carrier high data throughput satellite applications. Such state-of-the-art products are likely to have aided its performance in the quarter.
However, macroeconomic woes, dollar strength and high concentration risks are likely to have eroded margins. Qorvo operates in a competitive landscape that is becoming more complex with low barriers to entry. As each player strives to win designs to have a greater pie in the market, the battle gets murkier.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,027 million, which indicates a decline from the year-ago quarter’s reported figure of $1,110 million. The consensus estimate for adjusted earnings per share is pegged at $2.12, suggesting a decline from $2.83 recorded in the year-ago quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Qorvo in the fiscal first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.41%, with the former pegged at $2.13 and the latter at $2.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. price-eps-surprise | Qorvo, Inc. Quote
Zacks Rank: Qorvo has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Keysight Technologies, Inc. KEYS is set to release quarterly numbers on Aug 17. It has an Earnings ESP of +1.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Altice USA, Inc. ATUS is +0.38% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Aug 3.
The Earnings ESP for Advanced Micro Devices, Inc. AMD is +1.66% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
Qorvo, Inc. (QRVO) : Free Stock Analysis Report
Altice USA, Inc. (ATUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
