Apple supplier Qorvo cuts Q3 guidance ‘due to recent demand changes for flagship smartphones’

Qorvo, a provider of RF solutions, today announced it expects revenue for the third quarter of fiscal 2019 to be in the range of $800 million and $840 million, compared to its previous forecast of $880 million to $900 million, due to recent demand changes for flagship smartphones.

Qorvo’s forecast of demand from China-based handset manufacturers remains measured and largely unchanged. Qorvo’s current forecast of demand across markets served by Qorvo’s Infrastructure and Defense Products (IDP) segment are tracking within the range of its prior expectations.

Qorvo currently forecasts non-GAAP gross margin in the third quarter to be approximately 49.5%, compared to its original forecast of approximately 50%, due primarily to lower factory utilization. Non-GAAP operating expenses are projected to be approximately $161 million, down $4 million from the previous third quarter forecast, on expense control and lower incentive compensation. Non-GAAP diluted EPS for the third quarter of fiscal 2019 is expected to be $1.70 at the midpoint of guidance, compared to the previous forecast of $1.95.

In the March 2019 quarter, Qorvo currently expects sequential revenue to be down less than 10%.

Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

Source: Qorvo

MacDailyNews Take: Another one bites the dust.

SEE ALSO:
Apple has a plan as iPhone demand peaks; many suppliers don’t – November 13, 2018
JP Morgan trims Apple price target to $266 on iPhone XR weakness, economic concerns – November 12, 2018
Apple supplier Lumentum slashes outlook after large customer requests shipment cut – November 12, 2018
Analyst: Apple iPhone XR inventories are ‘bloated’ due to ‘underwhelming’ sales – November 9, 2018
Jefferies: Buy Apple stock for ‘massive’ services potential built on ‘stable iPhone business’ – November 2, 2018
Apple to stop reporting iPhone, Mac, and iPad quarterly unit sales – November 1, 2018
Apple beats Street with another record-breaking quarter – November 1, 2018
How a 1998 meeting with Steve Jobs gave birth to Wi-Fi – August 20, 2018

3 Comments

  1. Well this pisses me off as we should be reading headlines of the exciting new products (Brand new inventions) that Apple is offering and the many new markets including enterprise that Apple is going after, once again, to increase their roughly 9 % market share of phones and computers. While Android and Amazon products are everywhere,
    Amazon just got a HUGE contract from the U.S. Pentagon for cloud services.
    Now Apple with their superior quality and reputation for
    security and privacy should have nailed that 10 Billion deal. But alas,,,, no.

    Maybe if the Pentagon said the CLOUD service was for rainbows and unicorns to reside, Tim Cook would have taken notice.

    The point is, its also not just the money, its the optics, (I hate that word for some reason) I saw the new TV ad and billboards for the new phones, its so obscure, you can even tell that its a phone,,, Ok rinse lather repeat. – ABC always be closing,,, later.

  2. … lumentum
    … Japan display
    … Quorvo
    … Foxcon
    … Apples unit number decision and speculation revolving that.
    … Rumors of xr demand issues..

    It feels like a perfect storm for a stock holder..
    Hard times to be a stock holder ….
    At the moment conviction is what drives me through…While nerves are totaly wreaked.
    Been through a few of these… its tough…
    But im hanging in.

    What are your sentiments?

  3. Unfortunately, one doesn’t need an IQ to invest. AAPL beat Wallstreet revenue projection by .20 a share and disappointed them on iPhone unit sales. The only rational response was to buy more stock, because even with slowing (but record breaking) iPhone sales, AAPL killed the analysts predictions on Revenue. Their negative response to their unit number decision, in line with every other manufacturer is to dump stock. HEY, MORONS, PLEASE SELL ALL OF YOUR AAPL SO PEOPLE WITH A BRAIN CAN BUY UP SHARES AT LOWER COST!!! AAPL is killing it and will continue to do so with their Services business and their installed base. More shares for me!!!

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