Qorvo Still Tied To Apple's Fortunes, And Now Intel's As Well?
Stephen Simpson, CFA
Stephen Simpson, CFA
Qorvo: With Less Apple, Life May Still Be Healthy
Darspal S Mann
Darspal S Mann
Fri, Nov. 4, 10:52 AM
- Q3 results – revenue $863.7M (+22.1% Y/Y, $28.93M above estimates), EPS $1.29 ($0.12 below estimates), gross margin 42.8% (vs. 48.2% Q/Q, decrease attributed to below-expected manufacturing yields amid product ramp for large customer), operating expenses $172.9M, operating income $196.8M, net income $170.4M
- Share repurchase – $500M authorized
- Q4 projections – revenue $800M-$840M, sequential gross margin increase of 100 bps to 200 bps, EPS $1.15-$1.35, tax rate 8%
- Qorvo (NASDAQ:QRVO) president and CEO Bob Bruggeworth: "It’s clear we have work to do on gross margin, and we’ve taken steps to address it. We continue to drive toward our operating model, including above-market revenue growth and non-GAAP operating income above 30%."
- Share price summary – 1-month, -6%; 3-month, -5%; 1-year; +9%
- Prior quarters overview
- Conference call
- Press release
Fri, Nov. 4, 9:14 AM
Thu, Nov. 3, 4:04 PM
Wed, Nov. 2, 5:35 PM
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Fri, Sep. 16, 1:44 PM
- While already anticipated, Intel (INTC +2%) components are now confirmed to be installed within certain iPhone 7 configurations. Two Intel RF transceivers, a baseband modem and RF power management ICs are noted.
- Modems, transceivers and power management ICs provided by Qualcomm (QCOM +0.2% ) are also confirmed to be utilized in other device variations. Qualcomm had historically maintained an exclusive provider position of modem components for previous iPhone iterations.
- Supplies from Skyworks Solutions (SWKS -1.9%), Cirrus Logic (CRUS -1.8%), Samsung Electronics (OTC:SSNLF), Taiwan Semiconductor Manufacturing Company (TSM -0.7%), NXP Semiconductors (NXPI -2.2%), Broadcom (AVGO -1.3%), Qorvo (QRVO -2.4%), Texas Instruments (TXN -0.5%), Toshiba (OTCPK:TOSBF +4.4%), Lattice Semiconductor, (LSCC -0.6%), Dialog Semiconductor (OTC:DLGNF), SK Hynix (OTC:HXSCF) and other makers also so far validated.
Wed, Aug. 3, 9:15 AM
- Gainers: SZMK +45%. KOOL +43%. INVT +26%. GNW +23%. ZAGG +14%. OCLR +12%. FIT +9%. BOFI +8%. ING +8%. TRXC +8%. ETP +7%. FCAU +6%. ETSY +6%. ZTS +6%.
- Losers: RUBI -29%. DRWI -20%. CRAY -20%. VGZ -19%. KATE -18%. CYH -17%. CROX -17%. ELGX -11%. FTAI -9%. QRVO -8%. SHIP -6%. COH -6%. RGC -6%. HBI -6%. KORS -6%. INO -5%.
Tue, Aug. 2, 5:52 PM
- Though exceeding this quarter's expectations, Qorvo (NASDAQ:QRVO) posted only a slight 3.7% Y/Y increase in revenue ($697.6M).
- Gross margin of 48.2%, operating income of $167.6M, operating expenses of $168.6M and net income of $143.1M.
- Projects September quarter revenue of $820M-$850M, gross margin of 47%, a tax rate of 10% and EPS of $1.35-$1.45.
- Though shares are presently trading down more than 7%, Qorvo is up more than 18% on a 1-month basis, more than 35% on a 3-month basis and slightly more than 6% on a 1-year basis.
- Conference call
- Press release
Tue, Aug. 2, 4:03 PM
Mon, Aug. 1, 5:35 PM
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Tue, Jul. 5, 5:38 PM
Tue, Jul. 5, 10:18 AM
- Cirrus Logic (NASDAQ:CRUS) is off 7.4% and Skyworks Solutions (NASDAQ:SWKS) down 5.6% as Pacific Crest downgrades both to Sector Weight amid some disappointing iPhone supply chain forecasts.
- Qorvo (QRVO -5.5%) and InvenSense (INVN -5.1%) are down as well.
- Pac Crest has a fair value range of Cirrus Logic of $33-$36 (vs. its previous close of $38.04) and for $60-$67 on Skyworks (vs. previous close of $62.60).
- It also cut price targets on Analog Devices (ADI -1.7%) to $60 from $62 (7.7% upside); Broadcom (AVGO -2.5%) to $180 from $185 (19.7% upside) and Qualcomm (QCOM -1.3%) to $59 from $61 (12.8% upside).
- "Our lowered estimates reflect a much more disappointing second-half 2016 iPhone 7 ramp than what we had previously expected, as feedback from Asia indicates units are expected to be down 15% to 20% as compared to the iPhone 6s, as Apple appears to be taking a much more cautious view of the ramp," the analysts wrote.
Thu, Jun. 9, 2:28 PM
- Believing the stock "deserves to trade at a discount or 11x P/E vs. last three year average of 12.5x," Citi's Atif Malik has downgraded Skyworks (SWKS -1.7%) to Sell, and cut his target by $4.50 to $65.
- Malik notes Skyworks has relatively high exposure to the iPhone 6S, whose sales have been pressured. He also cites a "lack of premium [RF] filters to address faster growing carrier aggregation market," and concerns about "increasing dual sourcing led competition in the low band market where SWKS participates." He could become positive on Skyworks if it makes further progress in lowering its dependence on mobile (still responsible for 80% of sales).
- Rival Qorvo (QRVO -0.4%) has simultaneously been upgraded to Neutral, after "discussions in Asia indicate improved execution on integration/share gains and higher proliferation of carrier aggregation design wins." Malik adds Qorvo gained content share with the Galaxy S7 and iPhone SE. "Fundamentally, we view carrier aggregation as a key theme for RF stocks with QRVO better positioned to expand its $ growth opportunity based on its comprehensive suite of products including BAW filters."
Thu, Jun. 2, 4:57 PM
- Skyworks (NASDAQ:SWKS) is up 1.8% after hours to $67.75, and Qorvo (NASDAQ:QRVO) up 1.1% to $54.10, after RF chip rival Broadcom (up 6.4%) beat estimates for the April quarter (its first quarter following the Avago/Broadcom merger), and issued July quarter sales guidance that was above consensus at the midpoint.
- Wireless products accounted for 22% of Broadcom's revenue (much less than Avago's pre-merger exposure). Concerns about soft iPhone demand ahead of the iPhone 7 launch had contributed to low pre-earnings sales expectations.
Thu, May 26, 10:16 AM
- Mark J. Murphy, formerly, the CFO auto parts supplier Delphi Automotive, has been named Qorvo's (QRVO -0.6%) new CFO, effective June 6.
- Murphy will succeed Steve Buhaly, who previously announced he plans to retire this year. Buhaly will remain with Qorvo in an advisory role until the end of July.
Mon, May 23, 10:53 AM
- Taiwan's Economic Daily News reports Apple (AAPL +1.7%) has ordered contract manufacturers to produce 72M-78M iPhone 7 units this year, a record figure for a new iPhone and above analyst estimates of ~65M.
- Apple is outperforming on a day the Nasdaq is up 0.3%. As are chip suppliers Cirrus Logic (CRUS +3.1%), Skyworks (SWKS +3.3%), Qorvo (QRVO +2.7%), and InvenSense (INVN +4.6%). Over in Taipei, Foxconn parent Hon Hai Precision (OTC:HNHAF) rose 4.6%, and fellow iPhone manufacturer Pegatron (OTC:PGTRF) rose 9.9%. TSMC (TSM +2.7%), which is believed to be the exclusive manufacturer of Apple's A10 processor (expected to go into the iPhone 7), is also doing well.
- The report comes with Apple having guided calendar Q2 revenue to be down 13%-17% Y/Y due to soft iPhone 6S sales. The rumor mill has indicated the iPhone 7 will feature a dual-camera array and a 256GB storage option, and do away with the 3.5mm headphone jack. The 9.7" iPad Pro's improved display suggests display enhancements are also possible.
- Now read Apple: Berkshire Hathaway Not The Only One Buying
- Update: Also reported by the Economic Daily News: Apple is prepping a "Pro" or "Premium" iPhone 7 model to go with a standard iPhone 7 and 7+.
Thu, May 12, 10:53 AM
- A 2.4% decline in Apple (NASDAQ:AAPL) -- making a fresh 52-week low today -- is being tied to the Nikkei report pointing to a rough year for iPhone suppliers.
- Nikkei's report said that chip shipments from Taiwan Semiconductor Manufacturing (TSM -1.2%) -- will be 70-80% of 2015 second-half levels.
- CNBC is saying that Apple's decline today makes Google parent Alphabet the largest U.S. company by market value, at about $498.6B.
- Meanwhile, among Apple's suppliers, steep declines are prevalent today: AVGO -2.2%, SWKS -3.9%, QRVO -2.9%.
- Shares in Apple are down 14.3% YTD, and down 28.4% over the past 12 months.
- Now read Apple: Nikkei Declares iPhone 7 Dead Before Arrival »