Qorvo beats by $0.03, beats on revs; guides DecQ EPS and revs below consensus; guides FY25 revs below consensus; taking actions, including factory consolidation and operating expense reductions
4:07 PM ET 10/29/24 | Briefing.com
Reports Q2 (Sep) earnings of $1.88 per share, excluding non-recurring items, $0.03 better than the FactSet Consensus of $1.85; revenues fell 5.2% year/year to $1.05 bln vs the $1.03 bln FactSet Consensus. Co issues downside guidance for Q3 (Dec), sees EPS of $1.10-1.30, excluding non-recurring items, vs. $1.93 FactSet Consensus; sees Q3 revs of $875-925 mln vs. $1.05 bln FactSet Consensus. Co issues downside guidance for FY25, sees FY25 revs being down slightly from FY24's $3.77 bln vs. $3.94 bln FactSet Consensus."In the September quarter, we exceeded the midpoint of guidance in revenue, gross margin and EPS. Looking forward, the flagship and premium tiers in the smartphone market are holding up well, however, content and ramp profiles vary by model, and we are experiencing unfavorable mix. We expect this to continue in the second half of fiscal 2025. In addition, in the mid and entry tiers of Android 5G smartphones, mix has shifted toward entry-tier 5G at the expense of mid-tier 5G. In our current view, we don't expect this mix shift in Android 5G from mid-tier to entry-tier to reverse. As a result, we are taking appropriate actions, including factory consolidation and operating expense reductions as well as focusing on opportunities that align with our long-term profitability objectives. We currently expect full-year fiscal 2025 revenue and gross margin will be slightly down versus fiscal 2024." |
