GREENSBORO, N.C. - Qorvo Inc . (NASDAQ:QRVO) reported better-than-expected fiscal second quarter results but saw its shares plunge 12% in after-hours trading as the company's guidance fell short of analyst expectations.
The semiconductor company posted adjusted earnings per share of $1.88 for the quarter ended September 28, beating the consensus estimate of $1.84. Revenue came in at $1.05 billion, slightly above the $1.03 billion analysts were expecting and down 5.2% YoY.
However, Qorvo's outlook for the current quarter disappointed investors. The company forecast third quarter revenue of approximately $900 million, well below Wall Street's projection of $1.05 billion. Qorvo also guided for adjusted earnings per share between $1.10 and $1.30, significantly lower than the $1.94 analysts were anticipating.
"In the September quarter, ACG successfully supported our largest customer's seasonal smartphone ramp," said Bob Bruggeworth, President and CEO of Qorvo. He added that the company's High Performance Analog (HPA) and Connectivity and Sensors Group (CSG) segments are on track for mid-teen YoY growth in fiscal 2025.
Chief Financial Officer Grant Brown noted that while flagship and premium smartphone tiers are holding up well, the company is experiencing an "unfavorable mix" that is expected to continue in the second half of fiscal 2025. Brown also cited a shift toward entry-tier 5G phones at the expense of mid-tier models in the Android market.
In response to these headwinds, Qorvo said it is taking actions including factory consolidation and operating expense reductions. The company now expects full-year fiscal 2025 revenue and gross margin to be slightly down compared to fiscal 2024.
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