Connectivity and power solutions provider Qorvo (NASDAQ:QRVO) has delivered a better-than-anticipated set of first-quarter numbers with revenue at $651.2 million outperforming estimates by $11.5 million despite a 37.4% year-over-year drop. Further, EPS at $0.34 too handily beat expectations by $0.19.
During the quarter, Qorvo continued to lower channel inventory levels and is working with suppliers and customers amid a difficult macroeconomic backdrop. Buoyed by content gains, the company expects Q2 revenue to rise more than 50% sequentially.
For the third quarter, revenue is now pegged at $1 billion (plus or minus $15 million) with EPS anticipated at $1.75 at the midpoint of the top line.
Importantly, after this first quarter performance, the stock is also seeing major analyst action today with Exane BNP Paribas’ Karl Ackerman upgrading it to a Buy from a Hold alongside a $135 price target. Wells Fargo’s Gary Mobley has reiterated a Hold rating on the stock while increasing the price target to $110 from $100.
Overall, the Street has a $112.57 consensus price target on Qorvo alongside a Hold consensus rating. Shares of the company have now popped 19% so far this year.
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