Company Reports

No-moat Qorvo reported fiscal third-quarter results ahead of our expectations, with a forecast for the March quarter modestly below our expectations. Despite the outlook, we are encouraged by the company’s content within Samsung’s upcoming Galaxy S24 smartphone launch, as well as Qorvo’s position among Android-based smartphone original equipment manufacturers in China. We maintain our $128 fair value estimate and continue to view shares as undervalued.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that it has carved out an economic moat.

No-moat Qorvo reported fiscal second-quarter results ahead of our expectations while providing investors with solid guidance for the December quarter and beyond. We’re encouraged by management’s comments that it expects to recover toward its long-term adjusted gross margin target of 50%. We maintain our $128 fair value estimate and continue to view shares as undervalued.

Qorvo reported fiscal first-quarter results which, while dismal, came in ahead of our expectations. More importantly, Qorvo provided investors with a rosy outlook, thanks to upcoming content gains in Apple’s next slate of iPhones. Management also affirmed it is on track to reach its fiscal 2024 targets, including annual growth despite the slow start to the year. We maintain our $128 fair value estimate for no-moat Qorvo and view the shares as slightly undervalued.

Qorvo reported fiscal fourth-quarter results and provided investors with a forecast for the June quarter that remained dismal in absolute terms because of well-known weakness among Android-based smartphone customers, but was modestly ahead of our prior expectations. We maintain our $128 fair value estimate for no-moat Qorvo but continue to view shares as undervalued.

Qorvo reported fiscal third-quarter results in line with our tepid expectations, but the forecast for the March quarter disappointed us once again. Smartphone radio frequency, or RF, chip demand remains in the doldrums as a result of excess inventory of Android-based devices, leading to lower revenue and poor factory utilization.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that it has carved out an economic moat.

Qorvo reported solid fiscal 2023 second-quarter results but provided investors with a dreadful forecast for the third quarter, as demand for Android-based smartphones in China has cratered, leading to inventory corrections that will reduce near-term chip orders placed with the company. We've reduced our fair value estimate to $128 per share from $157. We still view the shares, which trade in the low to mid-$80s, as undervalued for long-term investors, as we anticipate that Android-based demand will recover. We don’t believe the company's shortfall is due to market share losses. While no-moat Qorvo’s shares remain cheap, we would still point investors toward shares of Qorvo’s rival, narrow-moat Skyworks Solutions.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that it has carved out an economic moat.

Qorvo reported admirable fiscal first-quarter results and provided investors with a solid forecast for the September quarter, but hinted that pain was ahead later in fiscal 2023 because of soft demand for low-end Android-based smartphones from Chinese original equipment manufacturers. We will lower our fair value estimate for no-moat Qorvo to $157 from $169, as we’re modestly less bullish on future revenue and gross margins. Yet we still view shares as undervalued for long-term, patient investors. We also still see an even more attractive margin of safety in shares of Qorvo’s rival, Skyworks Solutions, as it has less exposure to these Android devices.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players in the RF space with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that Qorvo has carved out an economic moat.

Qorvo reported solid fiscal fourth-quarter results but provided investors with a predictably weak forecast for the June quarter in light of soft smartphone demand in China, which should weigh on Qorvo's revenue for the next two quarters. We lower our fair value estimate to $169 from $190 due to the near-term weakness and tempered long-term growth expectations. We still view no-moat Qorvo as fundamentally undervalued and still anticipate healthy 5G radio frequency chip content gains in the years ahead but would point investors toward narrow-moat Skyworks because of its better execution over the years and its lower exposure to Chinese smartphone OEMs.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players in the RF space with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that Qorvo has carved out an economic moat.

No-moat Qorvo reported solid fiscal third-quarter results and provided investors with a decent fourth-quarter outlook due to expected supply stability and increased segment demand. We will maintain our fair value estimate of $190. Shares fell approximately 7% after hours as management sounded cautious about subsequent quarters. Yet we still view Qorvo as fundamentally undervalued, as we like the company's exposure to 5G smartphones and infrastructure equipment.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players in the RF space with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that Qorvo has carved out an economic moat.

We maintain our fair value estimates of $210 for narrow moat Skyworks and $190 for no moat Qorvo after Bloomberg reported that Apple is hiring engineers for an office in Irvine, California to develop wireless chips which might displace radio frequency, or RF, chips supplied by firms such as Skyworks and Qorvo. Apple made up 30% of Qorvo's revenue in fiscal 2021 and 59% of Skyworks' sales in fiscal 2021, so it would be a crushing blow if Apple were to entirely abandon either RF supplier. However, Apple's wireless development plans aren't a clear-cut sign to us that either Skyworks or Qorvo are on the chopping block- certainly not in the near term but perhaps not in the long term either.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players in the RF space with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that Qorvo has carved out an economic moat.

No-moat Qorvo reported solid fiscal second-quarter results but provided investors with a fiscal third-quarter outlook that was sizably below our prior expectations and management’s prior commentary, mostly due to Qorvo’s supply challenges, as well as supply challenges for other types of components faced by Qorvo’s key customers (such as Apple). We will maintain our $190 fair value estimate. Shares fell about 8% after hours to $164, which we think is providing long-term, patient investors with a modest margin of safety.

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Although the company is one of the few players in the RF space with the expertise to supply a wide variety of RF products to leading smartphone makers, we don’t yet believe that Qorvo has carved out an economic moat.

No-moat Qorvo reported solid fiscal first-quarter results and provided investors with a healthy outlook for the September quarter and the rest of fiscal 2022 (ending March 2022). We continue to foresee rising 5G radio frequency, or RF, chip content per smartphone, while we think the firm’s infrastructure and defense, or IDP, chip revenue will rebound in the long term. We raise our fair value estimate to $190 from $180 but view shares as fairly valued.