Chipmaker Qorvo (QRVO) late Wednesday beat Wall Street's estimates for its fiscal second quarter ended Sept. 29. Qorvo stock rose in extended trading.
XThe Greensboro, N.C.-based company earned an adjusted $1.75 a share on sales of $884 million in the September quarter. Analysts expected it to earn $1.62 a share on sales of $856 million. On a year-over-year basis, earnings per share rose 15% while sales climbed 8%.
For the current quarter, Qorvo guided to adjusted earnings of $1.95 a share on sales of $890 million, missing views. Wall Street was modeling Qorvo to earn $1.97 a share on sales of $899 million.
Qorvo stock rose 4% in after-hours trading on the stock market today. During the regular session, Qorvo stock surged 3.6% to 73.51.
Qorvo makes radio frequency chips for smartphones and other devices.
Qorvo Sales Helped By Flagship Smartphone Launches
"Qorvo's record revenue and EPS in the September quarter reflect the progress we're making on shaping the portfolio and improving operationally," Chief Financial Officer Mark Murphy said in a news release.
He added, "Our outlook calls for a strong December quarter with higher volumes and ongoing cost control, and it factors in a more measured view on demand from China-based handset manufacturers."
In the September quarter, revenue in the firm's Mobile Products unit rose 37% sequentially. It credited production ramps for "flagship smartphones" for the gain. Qorvo makes chips for Apple's (AAPL) iPhone and other handset vendors.
Chip Stocks Split On Outlook
Among chip stocks, the market has divided into haves and have-nots. Several firms have posted beat-and-raise quarterly reports like Intel (INTC) and Xilinx (XLNX). Others have lowered sales and earnings estimates for the current quarter amid slowing demand.
Earlier Wednesday, Silicon Motion Technology (SIMO) beat Wall Street estimates for the third quarter, but guided well below forecasts for sales and earnings in the fourth quarter.
Silicon Motion stock fell 2% to 37.59 on the news.
Late Tuesday, Maxim Integrated Products (MXIM) delivered better-than-expected sales and in-line earnings for the September quarter. But it disappointed with its December-quarter guidance. Maxim is seeing a broad slowdown in its industrial chip business.
Maxim stock rose 0.5% to 50.02 on Wednesday.
MaxLinear (MXL) late Tuesday reported generally in-line third-quarter results, but provided fourth-quarter guidance slightly below expectations.
Still, MaxLinear stock jumped 14% to 19.41 on the report.
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The post Qorvo Stock Rises On Quarterly Earnings Beat, But Outlook Light appeared first on Investor's Business Daily.
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