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    Qorvo Inc (QRVO)

    Q4 2024 Earnings Summary

    Reported on Jan 10, 2025 (After Market Close)
    Pre-Earnings Price$111.89Last close (May 1, 2024)
    Post-Earnings Price$101.93Open (May 2, 2024)
    Price Change
    $-9.96(-8.90%)
    • Qorvo is confident in gaining market share and growing revenue with its largest customer, expecting to gain share in FY '25 and FY '26 and grow revenue.
    • Strong tailwinds in the defense business are expected in the fiscal second half, driven by recent congressional budget approvals and increased order activity.
    • Anticipated gross margin expansion as factory utilization improves, with gross margins expected to be the low point in the June quarter and improve substantially in the September quarter.
    • Modest Revenue and Gross Margin Growth Expectations: Qorvo projects only modest growth in both revenue and gross margin for fiscal 2025.
    • Flat Outlook for Android Business in June Quarter: The company expects its Android business to be flat in the June quarter, potentially signaling challenges in that market segment.
    • Limited Contribution from Anokiwave Acquisition to Mobile Segment: Qorvo does not plan to integrate Anokiwave's technology into the mobile phone segment, focusing instead on defense markets, which may limit growth opportunities in mobile.
    1. Fiscal '25 Growth Outlook
      Q: Will revenue and gross margin grow modestly in fiscal '25?
      A: Yes, we expect to grow both revenue and gross margin modestly in fiscal '25, absent any macro-related disruptions . This growth is driven by content gains at our largest customer and success in the defense market .

    2. Confidence with Largest Customer
      Q: Any change in outlook for share gains with largest customer?
      A: We are very confident in our outlook with our largest customer, expecting to gain share and grow revenue in FY '25 and FY '26 .

    3. Gross Margin Improvement
      Q: How will you improve gross margins back to peak levels?
      A: We are improving utilization, optimizing manufacturing, and focusing on high-margin businesses like defense . Utilization across our U.S. fabs increased by 20 percentage points, from the 40s to the 60s .

    4. Android Business Outlook
      Q: What's the outlook for Android business in June?
      A: The Android business is likely to be flat in June . We're offsetting a decline from a big flagship ramp with growth elsewhere .

    5. Segment Growth Expectations
      Q: Are you expecting growth across all segments in fiscal '25?
      A: Yes, for the full year, we expect growth across all segments .

    6. Silicon Carbide Business
      Q: What's the outlook for silicon carbide business?
      A: Our silicon carbide business is mixed . Success in data centers, but areas like solar are soft due to the interest rate environment . It's a small but growing business with opportunities .

    7. Anokiwave Acquisition Focus
      Q: Is Anokiwave acquisition focused on mobile?
      A: No, the acquisition is focused on defense . We have no plans to bring it into the mobile business .

    8. Revenue Seasonality
      Q: How will fiscal '25 revenue shape compare to '24?
      A: Similar to fiscal '24, but we expect a larger December quarter than September . September and December will be our largest quarters .

    9. Inventory at Largest Customer
      Q: Are you seeing inventory build at your largest customer?
      A: No, we do not see any channel inventory between us and our largest customer . We ship directly to their manufacturers .

    10. Capital Intensity Targets
      Q: What are your capital intensity targets?
      A: We plan to spend CapEx around a 5% target level over time . It may vary based on capacity needed to support demand .