Qorvo forecasts quarterly results below estimates on weak flagship smartphone market
01/05/2024 22:15
May 1 (Reuters) - Wireless connectivity chipmaker Qorvo
QRVO.O forecast first-quarter revenue and profit below Wall
Street estimates on Wednesday as it expects weak demand from
flagship smartphone market, sending shares down more than 11% in
aftermarket trading.
Slowing sales of Apple's AAPL.O most popular product,
iPhone, has hit suppliers such as Qorvo, as it accounted for
about 37% of the chipmaker's total revenue in fiscal 2023, even
when the global smartphone market is recovering.
"As we begin fiscal 2025, flagship smartphone ramps and
large defense programs are down seasonally, and we expect
product mix to trend toward mass market 5G products and
associated higher-cost inventories in the June quarter," CFO
Grant Brown said in a statement.
An uncertain economy has also forced customers to cut
discretionary spending, with Qorvo facing stiff competition from
other bigger rivals such as Broadcom AVGO.O and Qualcomm
QCOM.O .
Rival Skyworks Solutions SWKS.O also forecast
third-quarter revenue below estimates on Tuesday, citing demand
concerns as clients struggle to offload excess inventory.
The Greensboro, North Carolina-based company expects
first-quarter revenue to be about $850 million, plus or minus
$25 million, compared with analysts' average estimate of $917.7
million, according to LSEG data.
Qorvo expects adjusted profit to be between 60 cents and 80
cents per share for the quarter ending June, compared with
estimates of $1.27 per share.
Revenue for the fourth-quarter ended March 30 was $941
million, while adjusted profit came in at $1.39 per share,
beating analysts' estimates for revenue of $926.3 million and
adjusted profit of $1.21 per share.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan
Barona)
((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))