Qorvo Inc (NASDAQ: QRVO) stock fell over 4.3% on 9th May, 2019 (As of 11:04 am GMT-4; Source: Google finance).
Non-GAAP net income in the March quarter was $151 million. March quarter cash flow from operations was $187 million and reflected inventory builds to support near-term customer demand. CapEx was a year low of $35 million, resulting in free cash flow of $152 million.
QRVO in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.22, beating the analysts’ estimates for the adjusted earnings per share of $1.06. The company had reported the adjusted revenue growth of 35.9 percent to $680.9 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $671.1 million. Mobile revenue of $443 million was supported by especially strong China and Korea-based customer demand. IDP revenue was $238 million, the 12th consecutive quarter and third year of double-digit year-over-year growth.
For the first quarter of 2020, the company expects the revenue to be in the range of $780 million to $800 million, gross margin is expected to be between 45% and 45.5% and diluted earnings per share to be of $1.30 at the midpoint of guidance
Meanwhile, in connectivity, IDP has won the entire RF front-end section for meshed WiFi access points by a leading manufacturer of WiFi home networking systems. QRVO has won on the breadth of the technology portfolio and the ability to supply superior BAW filtering and WiFi front ends. In automotive, the company has expanded thw support of 5G and Cellular Vehicle-to-Everything for multiple automotive OEMs, and the company now expect the commercial rollout of the front-end modules to begin in late 2019. In defense applications, the company has secured a design win to supply GaAs and GaN components to Lockheed Martin for a ground-based radar program for the U.S. Department of Defense.
During the first quarter 2019, QRVO has reached a significant milestone by supplying production volumes of the BAW-based mid-/high-band PADs to the world’s top 6 smartphone OEMs. Further, the company has received the first orders from customers for 5G variance for production this calendar year.
Additionally, QRVO has repurchased about $300 million in stock in the March quarter for a total of $638 million in the year. During the fourth quarter 2019, the company has also repurchased $68 million of the remaining 7% coupon 2025 notes and added $270 million to the 2026 notes at a rate under 5.2%.