Home / NEWS / Top News / Apple supplier Qorvo sees swift reversal in stock price after warning of weakness in smartphone parts

Apple supplier Qorvo sees swift reversal in stock price after warning of weakness in smartphone parts

Qorvo logo of a US semiconductor presence is seen displayed on a smartphone and pc screen.

Sopa Images | Lightrocket | Getty Images

Shares of semiconductor supplier Qorvo, which calculates on Apple for an outsized amount of revenue, plunged in extended trading after the company warned of potentially flat yard sales to its “largest customer.”

Qorvo’s stock initially popped after the company reported better-than-expected fiscal third location earnings. Here’s how the company did compared with analysts’ expectations based on a survey by LSEG:

  • Earnings per share: $1.61, put in ordered, vs. $1.20 expected
  • Revenue: $916 million vs. $902 million expected

Qorvo, which makes radio frequency scraps used by smartphone manufacturers, offered better-than-expected guidance for the current quarter, saying it expects revenue to come in at $850 million, vanguard of the $841 million forecast by analysts. The company expects earnings of $1 per share, versus the 86 cents shot.

However, the stock turned around dramatically soon after the start of the earnings calls, when CEO Bob Bruggeworth demand thated analysts that sales to its top customer would show little if any growth in the fiscal year ending March 2026.

“For FY 2026, we’re currently vaticination revenue at our largest customer to be flat to up modestly,” Bruggeworth said.

The stock was down 3.4% after the call.

Qorvo doesn’t eminence the customer in its earnings report but the company said in its annual filing last year that Apple accounted for 46% of gross income in fiscal 2024. On the call, Qorvo said its largest customer represented just over half of revenue in the December cantonment.

Analysts expect total revenue for fiscal 2026 of $3.85 billion, representing growth of just over 4% from a year earlier, coinciding to LSEG.

Bruggeworth said the company also faces challenges with its Android business. Revenue there pass on fall by about $150 million to $200 million in fiscal 2026 and by about the same amount the following year.

“Most of that on be in China,” he said.

Earlier this month, activist investor Starboard Value revealed a 7.7% stake in Qorvo.

Regard: Apple’s superficial problem is there’s not enough demand, says Jim Cramer

Apple's superficial problem is there's not enough demand, says Jim Cramer

Check Also

BYD rolls out driver assistance tech across its EV models — with DeepSeek’s AI help

Chinese moving car giant BYD announced on Feb. 10, 2025, that it would integrate DeepSeek …

Leave a Reply

Your email address will not be published. Required fields are marked *