Qorvo (QRVO) shares are up 7.4% in Thursday’s pre-market trading thanks to better-than-expected 1Q earnings and upbeat guidance. Its adjusted earnings rose 10.3% to $1.50 per share and beat analysts’ estimates of $1.13m driven by strong demand for 5G connectivity solutions.
Revenue grew 1.5% to $787.5 million year-over-year and surpassed Street estimates of $730.2 million.
Furthermore, the company’s 2Q revenues guidance range of $925 million to $955 million is now above analysts’ estimates of $852 million. Adjusted EPS in 2Q is forecast at $1.90, topping the Street estimate of $1.56.
Piper Sandler analyst Harsh Kumar raised the stock’s price target to $150 (30% upside potential) from $130 and reiterated a Buy. Kumar, in a note to investors, said “the company reported a strong June quarter and provided September quarter guidance ahead of expectations.” He added Qorvo is being “extremely conservative” regarding the December quarter.
Currently, the Street has a bullish outlook on QRVO stock. The Strong Buy analyst consensus is based on 14 Buys and 3 Holds. The average price target of $128 implies 11% upside potential in the coming 12 months. (See QRVO stock analysis on TipRanks).
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