Qorvo emblem of a US semiconductor firm is seen displayed on a smartphone and laptop display screen.
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Shares of semiconductor provider Qorvo, which counts on Apple for an outsized quantity of income, plunged in prolonged buying and selling after the corporate warned of doubtless flat gross sales to its “largest buyer.”
Qorvo’s inventory initially popped after the corporate reported better-than-expected fiscal third quarter earnings. Here is how the corporate did in contrast with analysts’ expectations based mostly on a survey by LSEG:
- Earnings per share: $1.61, adjusted, vs. $1.20 anticipated
- Income: $916 million vs. $902 million anticipated
Qorvo, which makes radio frequency chips utilized by smartphone producers, supplied better-than-expected steering for the present quarter, saying it expects income to come back in at $850 million, forward of the $841 million forecast by analysts. The corporate expects earnings of $1 per share, versus the 86 cents projected.
Nevertheless, the inventory rotated dramatically quickly after the beginning of the earnings calls, when CEO Bob Bruggeworth instructed analysts that gross sales to its prime buyer would present little if any progress within the fiscal 12 months ending March 2026.
“For FY 2026, we’re presently forecasting income at our largest buyer to be flat to up modestly,” Bruggeworth stated.
The inventory was down 3.4% after the decision.
Qorvo would not title the shopper in its earnings report however the firm stated in its annual submitting final 12 months that Apple accounted for 46% of income in fiscal 2024. On the decision, Qorvo stated its largest buyer represented simply over half of income within the December quarter.
Analysts anticipate complete income for fiscal 2026 of $3.85 billion, representing progress of simply over 4% from a 12 months earlier, in line with LSEG.
Bruggeworth stated the corporate additionally faces challenges with its Android enterprise. Income there’ll fall by about $150 million to $200 million in fiscal 2026 and by about the identical quantity the next 12 months.
“Most of that will likely be in China,” he stated.
Earlier this month, activist investor Starboard Worth revealed a 7.7% stake in Qorvo.
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