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Qorvo Plunges as Supply Chain Issues Bring Muted Guidance

Published 04/11/2021, 15:28
© Reuters.
QRVO
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By Dhirendra Tripathi

Investing.com – Qorvo stock (NASDAQ:QRVO) slumped 13% Thursday after the company's guidance for third-quarter revenue fell short of estimates.

A forecast for revenue between $1.09 billion to $1.12 billion for the current quarter is lower both from the prior quarter and the same quarter last year. It came in even as the company’s second-quarter sales and profit topped estimates.

Qorvo blamed the ongoing supply challenges and other factors affecting global smartphone demand, which would in turn hurt demand for its products that go into those devices. Qorvo’s products and technologies also feed space equipment, radar, power management systems and others.

Chief Financial Officer Mark Murphy said the challenges could moderate in the March quarter. The company expects full-year revenue to grow 15% and to deliver gross margin over 52%.

The company said it is acquiring United Silicon Carbide, a maker of silicon carbide power devices.

Revenue in the second quarter was $1.25 billion, up 13% from last year. Net profit rose over 19%, to $384.5 million.

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