Qorvo forecasts second-quarter revenue above estimates on strength from Apple

Tower Semiconductor

02/08/2023 22:04

Aug 2 (Reuters) - Wireless connectivity chip maker Qorvo
 QRVO.O  projected second-quarter revenue above market estimates
on Wednesday, as it expects more business from its biggest
customer, Apple  AAPL.O .
    Shares of the Greensboro, North Carolina-based company rose
4.2% in aftermarket trading. 
    "In the September quarter, we expect improved financial
performance supported by content gains at our largest customer,”
CEO Bob Bruggeworth said.
    As a result, the company expects revenue in the second
quarter to increase sequentially by over 50% and expects
year-over-year revenue growth in fiscal 2024.
    Qorvo makes radio-frequency chips used in 5G base stations,
as well as for cellular and WiFi connectivity in smartphones and
other gadgets. Apple contributed 37% to the company's total
revenue in fiscal 2023, ended April.
    Qorvo said it expected revenue of about $1 billion, plus or
minus $15 million, for the second quarter, which was above
analysts' expectations of $959.8 million. 
        Its forecast for adjusted earnings per share of about
$1.75 was also above expectations of $1.62 per share. 
    In the first quarter, the company reported revenue of $651.2
million. Analysts on an average had expected revenue of $639.8
million. 
        On an adjusted basis, it earned 34 cents per share,
compared with a profit estimate of 15 cents per share, according
to Refinitiv data.

 (Reporting by Zaheer Kachwala; Editing by Pooja Desai)
 ((Zaheer.Kachwala@thomsonreuters.com;))