QORVO Announces Record Earnings Results for Fiscal Year 2023 Third Quarter Ending December 31, 2022

Earnings Overview

QORVO ($NASDAQ:QRVO) reported their financial results ending December 31 2022 for the fiscal year 2023 third quarter on February 1 2023. Net income was reported at USD 743.3 million, down 33.3% year over year, while total revenue for the quarter was USD -15.9 million, a 107.4% decrease from the prior year.

Transcripts Simplified

Qorvo reported revenue of $743 million for the third quarter of fiscal 2023, $18 million above their midpoint guidance. Revenue was relatively strong in automotive, broadband, defense and silicon carbide power devices, but weak in 5G base station markets, SSDs and battery-powered tools. Gross margin was 40.9% on a non-GAAP basis. Operating expenses were $206 million, $90 million lower than their guidance and down $8 million versus last year.

Non-GAAP operating income was $99 million or 13% of sales. For the next quarter, they expect revenue between $600 million and $640 million, non-GAAP gross margin of approximately 41% and non-GAAP diluted earnings per share in the range of $0.10 to $0.15. Their balance sheet ended with $2 billion of debt outstanding and $919 million of cash and equivalents.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Qorvo. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Qorvo. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Qorvo. More…

Key Ratios Snapshot

Some of the financial key ratios for Qorvo are shown below. More…

Price History

The news was well-received by the market, with QORVO stock opening at $109.3 and closing at $113.5, up by 4.5% from the previous closing price of 108.7. This quarterly performance further confirms QORVO’s ability to deliver strong financial performance in the face of the ongoing COVID-19 pandemic. As companies navigate the difficult market conditions, QORVO’s results demonstrate the resilience of their strategy and their commitment to delivering value for their shareholders. Live Quote…

Analysis

GoodWhale has conducted an analysis of QORVO‘s financials, and the results indicate that it is a medium risk investment. This is based on their business model and their overall financial position. We have detected one risk warning in the balance sheet, which further reinforces the point that this is an investment with medium risk. To get more information about this risk warning and the overall analysis, you can become a registered user with GoodWhale. More…

Peers

In the world of semiconductor companies that provide radio frequency products, Qorvo Inc. has stiff competition. Its main competitors are Skyworks Solutions Inc, Broadcom Inc, and Qualcomm Inc. All of these companies are vying for a share of the market in order to provide their customers with the best products possible.

– Skyworks Solutions Inc ($NASDAQ:SWKS)

Skyworks Solutions Inc is a semiconductor company that designs, manufactures, and markets radio frequency and mixed signal semiconductor solutions for mobile, base station, satellite communications, WiFi, cable television, and other wireless communications applications. The company has a market cap of 13.87B as of 2022 and a return on equity of 17.47%.

– Broadcom Inc ($NASDAQ:AVGO)

Broadcom Inc is a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions. The company’s products enable the delivery of voice, video, data and multimedia content over fixed and mobile networks to homes, businesses and public places. Broadcom’s product portfolio includes switching, routing, security and storage solutions. The company markets its products to enterprises, service providers and consumers worldwide.

– Qualcomm Inc ($NASDAQ:QCOM)

Qualcomm Inc is a leading telecommunications company with a market cap of 131.76B as of 2022. The company has a strong focus on research and development and has a return on equity of 65.09%. Qualcomm’s products and services include chipsets, modems, and other technology solutions for the wireless industry. The company has a strong presence in the global market and is a major player in the development of 5G technology.

Summary

QORVO‘s third quarter earnings for the fiscal year 2023 showed a significant year-over-year decline in both total revenue and net income. Total revenue fell 107.4%, with net income declining 33.3%. Despite this, the stock price rose the same day as the earnings announcement, suggesting that investors were encouraged by the company’s performance.

QORVO is likely to remain attractive to investors due to its product portfolio and positive outlook for the upcoming quarter. It remains to be seen whether the company can continue to grow and regain its previous levels of performance.