Qorvo stock rallies on earnings beat, sales forecast

Share of Qorvo Inc. (QRVO) rallied after hours on Wednesday after the wireless-technology provider's first-quarter sales forecast and fourth-quarter results topped expectations, following efforts to lean down its stockpiles of components for Android smartphones amid "weakness in end markets." The company -- which makes cellular technology and Wi-Fi for smartphones and other digital devices, along with radio-frequency and power-management products for a variety of industries -- said it expected first-quarter sales of $620 million to $660 million, with adjusted earnings per share of 15 cents, compared with FactSet estimates for $626 million and earnings per share of 18 cents. "We anticipate continued progress reducing Android channel inventory in the coming quarters, with a return to historical norms by calendar year-end," Chief Financial Officer Grant Brown said in a statement. Shares raced 8.7% higher after hours. For its fiscal fourth quarter, Qorvo reported a net loss of $138.4 million, or $1.39 a share, contrasting with a profit of $212.3 million, or $1.95 a share, in the same quarter last year. Revenue fell to $632.7 million, compared with $1.17 billion in the prior-year quarter. The company reported adjusted earnings per share of 26 cents. Analysts polled by FactSet forecast adjusted earnings per share of 12 cents on sales of $621 million.

-Bill Peters

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05-03-23 1632ET

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