Qorvo Earnings: Maintain $85 Fair Value Estimate as Qorvo’s Restructuring Takes Shape

Qorvo reported fiscal third-quarter results and provided an outlook for the December quarter that was modestly ahead of our prior expectations. We’re encouraged by management’s ongoing restructuring and changing product mix toward radio frequency chip content going into premium smartphones while exiting the low-end smartphone market. Management was also upbeat about potential RF content wins with Apple over the next couple of years. Still, we think this turnaround will still take some time to play out. We maintain our $85 fair value estimate for no-moat Qorvo and view shares as fairly valued.