Q2 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$87.82Last close (Nov 1, 2023)
Post-Earnings Price$90.21Open (Nov 2, 2023)
Price Change
$2.39(+2.72%)
- Bull Case for QRVO Based on Q&A Section of Earnings Call Transcript:*
- Channel inventories are normalizing faster than expected, shifting from a headwind to a tailwind, leading to anticipated revenue growth in upcoming quarters. ,
- Qorvo secured significant ultra-wideband design wins, including a $250 million lifetime value automotive program with a leading German Tier 1, highlighting substantial future growth opportunities in both automotive and smartphone markets. ,
- Gross margins are expected to decline in the December quarter to between 43% and 44% due to selling higher-cost inventories manufactured during periods of lower utilization.
- Revenue is increasingly dependent on the largest customer, potentially contributing over 50% of total revenue, raising concerns about customer concentration risk.
- Uncertainty in the China Android market persists, with channel inventories not fully normalized and potential competition from Huawei impacting future revenues.