Revenues of technology company Qorvo, Inc. (NASDAQ: QRVO) declined 9% in the second quarter, driving adjusted earnings sharply lower. The results, however, exceeded the estimates and the company’s stock gained during Thursday’s after-hours session.
The Greensboro, North Carolina-based radio-frequency solutions provider recorded adjusted earnings of $1.52 per share for the September-quarter, down 13% from last year but above the consensus estimates. Reported profit, meanwhile, rose to $83 million or $0.70 per share from $32 million or $0.25 per share in the second quarter of last year even as as operating expenses dropped by about 13%.
Revenues down 9%
The weakness in adjusted profit reflects a 9% decline in revenues to $807 million. Analysts were looking for a slower growth.
Bob Bruggeworth, CEO of Qorvo, said. “During the quarter, we successfully integrated our programmable power management products and technologies into IDP. Following the quarter, we completed the acquisition of Cavendish Kinetics, adding RF MEMS technology and expanding Qorvo’s technology and product leadership.”
Outlook
For the December-quarter, the management currently expects revenues in the range of $840 million to $860 million. Adjusted gross margin is expected to be 48%. and adjusted earnings at $1.67 per share.
The guidance reflects continued strong mobile demand, aided by an uptick in 5G handset volumes. Pursuant to the strong operating performance and positive forecast, the company’s board of directors approved a new $1-billion share repurchase authorization.
During the quarter, Qorvo was selected by four leading China-based smartphone makers to supply PAD and other integrated solutions for upcoming 5G smartphones.
Cavendish Acquisition
Recently, the company completed acquisition of Cavendish Kinetics, a leading provider of advanced technology for antenna tuning applications, expanding its RF MEMS capabilities and technical leadership in switching and tuning.
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Qorvo’s stock moved up 33% since the beginning of 2019 and is hovering near the $80-mark, which is close to the record highs seen a year earlier. Over the years, the stock has maintained a steady uptrend, despite the fluctuations.