Goldman Sachs has initiated coverage of Qorvo (QRVO, Financial), assigning it a Neutral rating and setting a price target of $90. The investment firm expressed a generally positive outlook on the U.S. analog and radio frequency semiconductor sector, anticipating cyclical opportunities in the near future. Goldman Sachs predicts that analog industry shipments will approach their trendline within the next 12 to 18 months. The firm is particularly optimistic about companies that are currently shipping significantly below trend and those that have effectively managed their supply chains.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Qorvo Inc (QRVO, Financial) is $82.48 with a high estimate of $111.00 and a low estimate of $67.00. The average target implies an downside of 8.23% from the current price of $89.88. More detailed estimate data can be found on the Qorvo Inc (QRVO) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Qorvo Inc's (QRVO, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Qorvo Inc (QRVO, Financial) in one year is $100.67, suggesting a upside of 12% from the current price of $89.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Qorvo Inc (QRVO) Summary page.
QRVO Key Business Developments
Release Date: April 29, 2025
- Revenue: $869 million for the March quarter.
- Non-GAAP Diluted Earnings Per Share (EPS): $1.42.
- Non-GAAP Gross Margin: 45.9% for the March quarter.
- Non-GAAP Operating Expenses: $247 million.
- Largest Customer Revenue Contribution: Approximately 43% of total revenue for the March quarter.
- Full Year Fiscal 2025 Revenue: $3.7 billion.
- Full Year Fiscal 2025 Non-GAAP Gross Margin: 45.2%.
- Cash and Equivalents: Approximately $1 billion at quarter end.
- Long-term Debt: Approximately $1.5 billion remaining.
- Net Inventory Balance: $641 million, a decrease of $15 million sequentially and $70 million year-over-year.
- Operating Cash Flow: Approximately $200 million for the fourth quarter.
- Capital Expenditures (CapEx): $29 million for the fourth quarter.
- Free Cash Flow: $171 million for the fourth quarter.
- Fiscal 2025 Free Cash Flow: $485 million.
- Shareholder Returns: Over $350 million returned via share repurchases in fiscal 2025.
- Debt Retirement: Over $400 million of debt retired in fiscal 2025.
- June Quarter Revenue Guidance: Approximately $775 million, plus or minus $25 million.
- June Quarter Non-GAAP Gross Margin Guidance: Between 42% and 44%.
- June Quarter Non-GAAP Diluted EPS Guidance: Between $0.50 and $0.75.
- June Quarter Non-GAAP Operating Expenses Guidance: Approximately $250 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Qorvo Inc (QRVO, Financial) delivered strong financial results for the March quarter, exceeding the midpoint of guidance with revenue of $869 million and non-GAAP diluted earnings of $1.42 per share.
- The company achieved record revenue in its defense and aerospace business, with a sales funnel exceeding $5 billion, indicating strong future growth potential.
- Qorvo Inc (QRVO) reported significant growth in its Ultra-Wideband sales funnel for automotive, which has grown by more than $500 million over the last 12 months.
- The company is executing strategic initiatives to improve performance, including expanding its product portfolio for its largest customer and achieving greater than 10% year-over-year content growth.
- Qorvo Inc (QRVO) is making progress in reducing inventory levels, unlocking free cash flow, and maintaining a strong balance sheet with approximately $1 billion in cash and equivalents.
Negative Points
- Qorvo Inc (QRVO) faces ongoing uncertainty surrounding tariffs and broader macroeconomic conditions, which could impact future financial performance.
- The company is experiencing a decline in its mass-tier Android business, with plans to exit $150 million to $200 million worth of lower-margin Android business.
- There is potential for indirect tariff impacts, which could affect the company's financial results, although the direct impact is currently estimated to be small.
- Qorvo Inc (QRVO) is closing its facility in Costa Rica as part of its efforts to consolidate its manufacturing footprint, which may involve transition challenges.
- The company is navigating a dynamic and unpredictable tariff environment, which requires ongoing mitigation efforts and collaboration with customers to manage potential impacts.
