Qorvo beats first quarter revenue estimates on upbeat chip demand
30/07/2024 22:26
July 30 (Reuters) - Chipmaker Qorvo QRVO.O beat Wall
Street expectations for first-quarter revenue on Tuesday, as it
benefited from a rise in orders due to a recovery in the
smartphone market.
Qorvo's results indicate that the Apple AAPL.O supplier
has been received a boost in chip orders thanks to increased
smartphone demand, driven by the integration of new artificial
intelligence features.
Global smartphone shipments rose 6.5% in the second
quarter, led by Samsung Electronics 005930.KS and Apple,
according to data from IDC.
Qorvo faces stiff competition from larger chip suppliers
like Qualcomm QCOM.O and Broadcom AVGO.O , which have been
benefiting from a rebound in the Chinese smartphone market.
However, the company forecast second-quarter revenue in line
with market estimates, suggesting that a complete recovery in
the smartphone market is still further down the road.
Shares of the Greensboro, North Carolina-based company rose
1.3% in extended trading.
Revenue for the first quarter came in at $886.7 million,
beating estimates of $851.9 million.
On an adjusted basis, the company earned 87 cents per
share, compared with estimates of 71 cents.
Qorvo forecast second-quarter revenue of $1.03 billion, plus
or minus $25 million, in-line with the average analysts'
estimate, according to LSEG data.
The company expects adjusted earnings per share of $1.75 and
$1.95, compared with estimates of $1.83 per share, for the
second quarter.
(Reporting by Zaheer Kachwala in Bengaluru: Editing by Tasim
Zahid)
((Zaheer.Kachwala@thomsonreuters.com;))