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Qorvo, Inc (QRVO)

- NASDAQ
  • Wed, May 27, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 39 Comments
  • Fri, May 22, 10:13 AM
    • Goldman has launched coverage on Qorvo (QRVO +2.1%) with a Buy rating and $98 target. Rival Skyworks (SWKS +2%) has been started with a Neutral rating and $108 target, but is also up.
    • Qorvo now up 20% since the RF Micro/TriQuint merger went into effect at the beginning of the year; shares go for 16x FY16E (ends March '16) and 13x FY17E EPS. Skyworks is up 46% YTD; shares trade for 21x FY15E (ends Sep. '15) and 18x FY16E EPS.
    • Both companies have made a string of product launches this week. Qorvo's launches include: 1) Power amplifiers for small cell base stations (a growing market) declared to have industry-leading efficiency. 2) High-power Wi-Fi amplifiers for access points, set-tops, and other home products. 3) Gallium nitride (GaN) amplifiers said to deliver improved performance for satellites. 4) Silicon on insulator (SOI) components for broadband infrastructure hardware. 5) Amplifiers for point-to-point RF transmission systems made with both gallium nitride and gallium arsenide (GaAs).
    • Skyworks' launches include: 1) A set of RF switches for the burgeoning IoT hardware market. 2) Front-end modules for the smart energy meter, industrial, scientific, and medical markets. 3) Ceramic RF filters for high-frequency wireless systems.
    • Update: Mizuho has launched coverage on Skyworks (as part of a broader chip stock launch) at Buy. The firm forecasts FY16 EPS of $6 (above a $5.92 consensus) and FY17 EPS of $7.
    | 11 Comments
  • Mon, May 18, 2:10 PM
    • Many chip stocks are turning in healthy gains amid a 0.7% gain for the Nasdaq after the NY Post reported Altera (up 6.2%) has resumed buyout talks with Intel.
    • Also possibly helping: China's big-3 carriers have announced major data tariff cuts. Brean has argued the cuts are a positive for RF chipmakers Skyworks (SWKS +5.7%), Qorvo (QRVO +4.2%), and Avago (AVGO +1.9%); the companies benefit from rising 4G phone sales.
    • Aside from the aforementioned companies, today's gainers include Synaptics (SYNA +4.8%), Himax (HIMX +2.3%), and Silicon Motion (SIMO +2.3%), each of whom also has Chinese mobile exposure. Other winners include Atmel (ATML +3.7%), Microsemi (MSCC +2.6%), InPhi (IPHI +2%), Intersil (ISIL +2.5%), Silicon Labs (SLAB +2.5%), IDT (IDTI +2.3%), and MaxLinear (MXL +3.5%).
    • Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 1 Comment
  • Thu, May 7, 11:13 AM
    • Just as Qorvo (QRVO +9%) and Avago (AVGO +5.1%) rallied in response to Skyworks' (SWKS +2.1%) beat-and-raise FQ2 report last week, Skyworks and Avago are rallying today after Qorvo beat FQ4 estimates with the help of strong iPhone 6-related sales, and offered above-consensus FQ1 guidance.
    • Needham's Quinn Bolton has upgraded Qorvo to Buy, and set an $88 target. Bolton: "Management expects continued robust revenue growth in C2H15 as it has high visibility into the major Tier 1 OEM platform launches later this year. Additionally, QRVO expects continued 4G adoption in the emerging markets to drive strong growth in F1Q16 and C2H15, echoing recent peer commentary."
    • He also notes Qorvo now expects to exceed prior RF Micro/TriQuint merger synergy targets, and that its 2H15 gross margin and op. margin could respectively top targets of 50% and 30%. "We believe QRVO's valuation multiple has yet to reflect the greater than expected synergies, revenue growth and operating leverage."
    • Qorvo is now aiming for more than $150M/year in synergies by the end of 2016. Major FQ4 design wins included a diversity switch module for a flagship Android phone set to launch in 2H15, and power amplifier wins for major base station and an 802.11ac Wi-Fi chipset. The company asserts the merger is helping it develop integrated RF front-end solutions combining amplifiers, filters, and diversity modules.
    | Comment!
  • Thu, May 7, 9:20 AM
    | 2 Comments
  • Wed, May 6, 4:10 PM
    • Qorvo (NASDAQ:QRVO): FQ4 EPS of $1.11 beats by $0.24.
    • Revenue of $634.9M (+46% Y/Y) beats by $11.5M.
    • Expects FQ1 revenue of $660M-$670M and EPS of $1.00-$1.10, above a consensus of $651.2M and $0.98.
    • Shares +7.5% AH.
    • Press Release
    | 4 Comments
  • Fri, May 1, 12:12 PM
    • A slew of firms have hiked their Skyworks (SWKS +6%) targets after the company beat FQ2 estimates with the help of strong iPhone 6/Galaxy S6-related demand, and (in contrast to many chip industry peers) provided above-consensus FQ3 guidance. Peers Qorvo (QRVO +4.5%) and Avago (AVGO +4.1%) are following Skyworks higher.
    • Pac Crest's John Vinh ($110 target): "SWKS confirmed that its SkyOne Ultra front-end module has been designed into Samsung’s GS6. We believe the company’s content increased by $1 in the GS6 vs. the GS5 ... we believe this helped more than offset weakness in the China smartphone market, which was down in CQ1. SWKS still sees a strong ramp of 4G smartphones in China and estimates units growing from 100 million in 2014 to the range of 225 million to 250 million in 2015."
    • Raymond James' Steven Smigle ($117 target) notes the SkyOne Mini 2G/3G/4G front-end module line (aimed at cheaper phones) has a number of Chinese design wins, and expects Chinese phone demand to rebound in 2H15. "Total sales for filters sound more bullish compared to last quarter with management believing they will exceed their goal of selling 1 billion TC-SAW filters in 2015 ... The Broad Markets segment also sounds positive with new design wins in various automotive and WiFi connectivity solutions."
    • B. Riley's Craig Ellis ($120 target): "[N]ew integrated products such as diversity receive modules are poised to compliment the now-ramping SkyOne Ultra, Panasonic JV ops integration and optimization remains in early-innings, and the ability to price for value gets steadily better as the portfolio increasingly migrates to Integrated or Broad Market products which are now 69.0% of sales."
    • Qorvo reports on May 6. Avago typically reports later in May.
    | 7 Comments
  • Fri, Apr. 24, 2:03 PM
    • Though the Nasdaq is up 0.7% thanks to market-pleasing earnings from Google, Microsoft, and Amazon, chip stocks (SOXX -2.1%) are adding to their Thursday losses after Freescale, Altera, Microsemi, and Maxim joined the ranks of chipmakers offering soft Q2 guidance; Texas Instruments, Xilinx, and Qualcomm did so on Wednesday afternoon.
    • NXP (NXPI -4.3%), set to merge with Freescale in a cash/stock deal, is selling off ahead of its April 29 Q1 report. RF chipmakers Skyworks (SWKS -3.8%), Qorvo (QRVO -4.4%), and Avago (AVGO -5.2%) are also seeing steep declines.
    • Other decliners include a slew of telecom/networking, microcontroller, and analog/mixed-signal chipmakers. The group includes Marvell (MRVL -3%), ON Semi (ON -6.9%), Atmel (ATML -3.3%), Cypress (CY -4%), Lattice (LSCC -3.9%), Semtech (SMTC -6.9%), Cavium (CAVM -6%), PMC-Sierra (PMCS -2.9%), InPhi (IPHI -3.8%), and Silicon Labs (SLAB -2.9%). Chip packaging/testing firm Amkor (AMKR -5.7%) is also off; its Q1 report arrives on Monday.
    • As was the case with TI and Xilinx, soft telecom equipment chip demand was often blamed by those guiding light yesterday afternoon. Freescale (FSL -3.5%) stated it expects network processor division sales to be down Q/Q and RF (base station power amplifier) division sales to be flat. Microcontroller, automotive, and analog and sensor division sales are expected to rise.
    • Altera (ALTR -3.3%) stated its "telecom and wireless business, and particularly our wireless business globally looks to be quite weak in [Q2], while the rest for our business will in aggregate be flat to slightly up." Regarding its Q1 miss, the company notes "Industrial, test, compute and storage, and to a lesser extent military, fell short of our forecast" (share loss to Xilinx?).
    • Maxim reports seeing "broad-based softness in communications infrastructure demand" and soft industrial bookings to go with healthier mobile/auto demand. The Galaxy S6 appears to be giving a lift to Maxim's mobile sales.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 1 Comment
  • Thu, Apr. 23, 12:20 PM
    • While the Nasdaq is up 0.3%, chip stocks are selling off (SOXX -1.8%) after Texas Instruments, Xilinx, and Qualcomm all provided soft calendar Q2 guidance. TI and Xilinx also missed Q1 sales estimates, while Qualcomm beat.
    • Decliners include Avago (AVGO -3.7%), Qorvo (QRVO -2.5%), Freescale (FSL -3%), STMicroelectronics (STM -3.6%), Atmel (ATML -2.3%), PMC-Sierra (PMCS -2.5%), Fairchild (FCS -2.2%), Cypress (CY -2.1%), Audience (ADNC -6.6%), IDT (IDTI -4.5%), Vishay (VSH -2.9%), AppliedMicro (AMCC -2.3%), and Cavium (CAVM -4.4%). NXP, ON Semi, Linear, Microchip, and Maxim remain lower after falling AH yesterday.
    • With the decliners including many microcontroller, analog/mixed-signal, and telecom equipment chipmakers, TI (TXN -7.3%) might be the biggest culprit: The analog/DSP giant blamed soft telecom equipment and consumer electronics demand for its numbers, with particular weakness in mobile infrastructure (a 2014 strong point) and PCs; auto and industrial demand was healthier.
    • On its CC (transcript), TI attributed the mobile weakness to delayed carrier capacity upgrades. This morning, mobile infrastructure giant Ericsson posted a Q1 miss blamed in part on weak North American 4G spending.
    • Likewise, Xilinx (XLNX -1.3%), which has strong 4G infrastructure exposure, stated on its CC (transcript) wireless sales were weaker than expected due to "continued softness in North America and a weakening in China LTE business." Wired infrastructure sales were in-line, and other markets outperformed.
    • Qualcomm largely blamed its guidance on the iPhone 6's share gains and a loss of chip share at Samsung, rather than industry demand issues. Altera, Freescale, Maxim, Microsemi, and Synaptics report after the close.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    • 8 days ago: Chip stocks rally following Intel/Linear's earnings
    | 1 Comment
  • Tue, Apr. 14, 2:26 PM
    • Citing soft Q1 Chinese demand, Barclays' Blayne Curtis argues Qorvo (QRVO -3%) could provide light calendar Q2 guidance. He thinks Skyworks (SWKS -3.1%) estimates are safe, but also believes a lack of upside could yield multiple compression following a big 2014/2015 rally.
    • Curtis expects demand to pick up in seasonally stronger 2H15, but also doesn't forecast a material increase in Apple orders following huge iPhone 6-related sales.
    • Others on the sell-side have also reported seeing weak Q1 demand from Chinese smartphone OEMs. Strong Galaxy S6 demand could act as an offset.
    • Skyworks remains up 31% YTD; Qorvo is nearly flat. Skyworks' FQ2 report arrives on April 30. Qorvo hasn't set an earnings date yet.
    | 1 Comment
  • Tue, Apr. 7, 3:18 PM
    • Today's notable tech gainers include privileged account protection software leader CyberArk (CYBR +7.5%), seismic hardware provider Geospace (GEOS +10.5%), M2M hardware/4G router provider Novatel (MIFI +8.4%), Chinese auto site Autohome (ATHM +5.5%), cloud revenue management software provider ServiceSource (SREV +5.4%), and unstructured data management software vendor Varonis (VRNS +4.9%). The Nasdaq is up 0.3%.
    • There are fewer major decliners. Notable ones include RF chipmaker Qorvo (QRVO -3.5%), contract manufacturer Sanmina (SANM -3.4%), and IP licensing firm Worlds (OTCQB:WDDD -10.7%).
    • Volatile CyberArk has risen to its highest levels since early March, two week before a lockup expired. Geospace, buoyed by rising oil prices, is up 22% over the last two days. ServiceSource's gains follow the naming of a new CFO.
    • Qorvo's decline come in spite of a target hike (to $95 from $87) by Brean; the firm argues growing Chinese phone exports and rising RF chip content are offsetting domestic Chinese softness for Qorvo and peers.
    • Previously covered: Twitter, FireEye, DragonWave, Axcelis, IGT, Marketo, 500.com, InPhi, Demandware, Splunk, Informatica
    | Comment!
  • Thu, Mar. 26, 10:50 AM
    • The Philadelphia Semi Index (SOXX -1.8%) is now down 6% over the last two days. Today's losses come after NAND flash giant SanDisk issued a Q1 warning and withdrew its full-year guidance - price pressure, soft enterprise sales, and delayed product qualifications were all blamed.
    • Meanwhile, some are partly blaming yesterday's big selloff on cautious remarks from TSMC (has an estimated ~50% global foundry share) at a Credit Suisse conference. CS analyst Randy Abrams reports TSMC (NYSE:TSM) has observed "a slowdown in the past 4-5 weeks due to US$ strength impacting European and emerging market purchasing power," and that inventories "will be a few days above seasonal exiting 1Q15." Pac Crest downgraded TSMC two weeks ago on inventory concerns.
    • Following an Asian trip, Susquehanna's Chris Caso has argued there isn't too much to be alarmed about, though he admits forex could be an issue. "There’s mixed signals here and there. We weren’t picking up anything that was tremendously different across the supply chain. PCs were the weakest area. That’s really not a surprise."
    • RF chipmakers Skyworks (SWKS -4.6%) and Qorvo (QRVO -2.1%), among 2014's best performers, are again selling off; peer Avago is off only slightly. Also seeing further profit-taking are Ambarella (AMBA -3%), NXP (NXPI -3.6%), Freescale (FSL -2.8%), Cavium (CAVM -3.2%), and STMicroelectronics (STM -4.5%).
    • Among equipment makers, Axcelis (ACLS -2.9%), Aixtron (AIXG -3.6%), Veeco (VECO -3%), and Kulicke & Soffa (KLIC -2.5%) are declining. A selloff in European equities could be affecting Aixtron, NXP/Freescale, and STMicro.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    • Update: Credit Suisse, Goldman, and Deutsche have each offered thoughts on the chip selloff.
    | 3 Comments
  • Wed, Mar. 25, 12:03 PM
    • Chip stocks are particularly hard-hit  (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
    • AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
    • Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
    • Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
    • TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 19 Comments
  • Mon, Mar. 16, 9:25 AM
    • DA Davidson has upgraded Qorvo (NASDAQ:QRVO) to Buy, and hiked its target by $30 to $100.
    • The RF chipmaker's shares have risen to $74.40 premarket; the post-merger high is $78.05. Qorvo trades for 15.6x an FY16 (ends March '16) EPS consensus of $4.78.
    | 4 Comments
  • Wed, Feb. 25, 6:19 PM
    • In addition to beating FQ1 EPS estimates (while posting in-line revenue), Avago (NASDAQ:AVGO) is guiding for FQ2 revenue to be down 3% to up 1% Q/Q. That implies a range of $1.59B-$1.65B, above a $1.54B consensus.
    • Driving the FQ1 EPS beat: Gross margin was 59%, up from FQ4's 58% and the year-ago period's 52%, and above guidance of 57.5% (+/- 1%). FQ2 GM guidance is at 58.5% (+/- 1%).
    • Also helping EPS: Operating expenses totaled $293M, up from $142M a year ago thanks to acquisitions, but down from $303M in FQ4 thanks to cost cuts.
    • As expected, strong iPhone-related sales acted as a big FQ1 tailwind: Wireless product sales (40% of total revenue) rose 6% Q/Q and 90% Y/Y. Wired infrastructure (21% of total revenue, boosted by the PLX and LSI acquisitions) fell 1% Q/Q and rose 52% Y/Y. Enterprise storage (29% of revenue, a product of the LSI acquisition) rose 5% Q/Q. Industrial/other (10% of revenue) fell 4% Q/Q and rose 21% Y/Y.
    • Avago has risen to $119.03 AH, making new highs in the process. RF component rivals are ticking higher: Skyworks (NASDAQ:SWKS) +0.9% to $88.49. Qorvo (NASDAQ:QRVO) +1.1% to $67.92.
    • Avago's FQ1 results, Emulex acquisition, PR
    | 2 Comments
  • Mon, Feb. 2, 1:20 PM
    • Following today's steep decline, Qorvo (QRVO -6.3%) is down 8% since beating FQ3 estimates and issuing healthy FQ4 guidance last Wednesday (amid high expectations). 1.5M shares have been traded; the daily average since Qorvo began trading as a post-merger entity last month is 2M.
    • Northland Securities upgraded the RF chipmaker to Outperform on Thursday. Shares go for 15x estimated FY16 (ends March '16) EPS. The FY16 revenue growth consensus is at 13.8%.
    | 5 Comments
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Company Description
Qorvo Inc is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.