North Carolina semiconductor manufacturer Qorvo’s fiscal fourth-quarter results revealed it beat Wall Street’s earnings predictions by 18.94 percent. The Samsung supplier also managed to increase its quarterly revenue generation by $106.9 million from 2019.
CEO Bob Bruggeworth attributed his firm’s robust performance to its commitment to next-generation digital communications technology.
Qorvo’s FQ4 Results
Qorvo sold $787.8 million last quarter with adjusted net income of $185.3 million or $1.57 per share. Zacks Equity Research pegged the firm’s revenue at $767.9 and its earnings at $1.32 per share. In addition to exceeding market analyst expectations, the company beat its FQ4 2019 sales and profits by 15.69 and 28.6 percent, respectively.
The radiofrequency component maker also improved its adjusted gross margin by 0.3 basis points and increased its cash and equivalents by $3.9 million.
In its earnings press release, Qorvo highlighted the successful deployment of its 5G and Wi-Fi 6 components. Specifically, the firm noted Samsung utilized its RF parts in its Galaxy S20 series, which launched in February. The company also mentioned it supplied another leading smartphone manufacturer with a complete set of fifth-generation networking components. As such, the corporation improved its overall position within the Android-powered mobile device space.
Even in ideal conditions, Qorvo’s quarterly growth would be impressive, but its achievement stands out because of COVID-19’s impact on the global supply chain.
Qorvo’s Near-Term Outlook
The chipmaker offered measured guidance for the first fiscal quarter of 2021 due to the pandemic effect on product demand.
The firm estimated revenue range for the June period is $710 million to $750 million with adjusted earnings per share of $1.13. In FQ1 2020, the corporation generated $775.6 million in revenue and adjusted profits of $1.36 per share. By comparison, Zacks predicts the manufacturer will post earnings of $1.02 per share against $698.71 million in sales.
CFO Mark Murphy noted his corporation is confident of its long-term growth potential despite its negative near-time forecast.
While an executive expressing faith in their company’s prospects is expected, Murphy’s optimism seems justified. For one thing, Samsung plans to ship a host of midrange 5G-enabled smartphones this summer. If the next iteration of the A series performs as well as it has in the past, the chipmaker’s sales should remain consistent through year’s end.
Besides, Qorvo just completed two acquisitions, which will help diversify its portfolio. The company can leverage Custom MMIC’s GaAs and GaNF RF components to expand its footprint in the aerospace and defense sectors. Similarly, the firm’s purchase of Decawave will give it the resources to develop a host innovative millimeter-wave devices.
By investing in the future of digital communications, Qorvo has taken steps to ensure its ongoing success.