Why Is Qorvo (QRVO) Up 6.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Qorvo (QRVO). Shares have added about 6.3% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Qorvo due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Qorvo, Inc. before we dive into how investors and analysts have reacted as of late.Qorvo Beats Q1 Earnings Estimates Despite Y/Y Lower Revenues Qorvo reported strong first-quarter fiscal 2026 results, with both adjusted earnings and revenues surpassing the respective Zacks Consensus Estimate.The company reported a revenue contraction year over year due to a net sales decline in the Advanced Cellular Group (ACG) and Connectivity and Sensors Group (CSG) segments. However, solid demand trends in multiple end markets, including defense, aerospace, power management, Wi-Fi and smartphones, partially cushioned the top-line growth in this quarter.Net IncomeOn a GAAP basis, the company reported a net income of $25.6 million or 27 cents per share compared with $0.4 million or break-even earnings in the prior-year quarter. Despite lower revenues, GAAP earnings improved largely due to lower costs of goods sold and operating expenses and an income tax benefit in the reported quarter. Non-GAAP net income was $86.5 million or 92 cents per share compared with $83.5 million or 87 cents per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 30 cents.RevenuesNet sales during the quarter declined to $818.8 million from $886.7 million in the prior-year quarter. Despite significant improvement in inventory levels, demand in various end markets has yet to recover fully, which has impeded revenues. Macroeconomic headwinds also adversely impacted the top line. Nevertheless, during the quarter, the company secured major design wins for low-band, mid-high-band and ultra-high-band paths, as well as mid-high secondary transmit, antenna tuning, discrete filters and Wi-Fi 7 front-end modules that offer unmatched flexibility in power management and efficiency. The top line beat the Zacks Consensus Estimate of $775 million.Segmental PerformanceHigh Performance Analog (HPA) contributed $137.4 million in revenues compared with $129.5 million in the year-ago quarter, largely driven by solid revenues in the defense and aerospace business. Strength was broad-based and included applications such as manned and drone-based airborne radar, space-based radar, Satellite Communications, Electronic Warfare and missile defense systems. The company secured new product orders for several large domestic and international ground-based radar systems. The transition from legacy mechanical systems to active electronics scanning systems is driving growth in the defense and aerospace business. In power management, the company continues to boast a strong presence in the consumer electronics sector. Healthy traction in automotive also cushioned the top line. The growing demand for DOCSIS 4.0 hybrid power doublers is supporting the growth of the infrastructure business.Revenues from CSG were $110.2 million compared with $114.9 million in the year-earlier quarter as an automotive customer delayed a ramp-up for ultra-wideband product. Net sales in ACG were $571.2 million, down 11.1% year over year, due to a fall in Android revenues.Other DetailsNon-GAAP gross profit declined to $360 million from $362.7 million, with respective margins of 44% and 40.9%. Non-GAAP operating expenses decreased to $251.8 million from $264.5 million a year ago. Non-GAAP operating income was $108.2 million compared with $98.1 million in the year-ago quarter.Cash Flow & LiquidityAs of June 28, 2025, QRVO had $1.17 billion in cash and cash equivalents and $1.55 billion of long-term debt. The company generated $182.9 million in net cash from operating activities in the quarter, with a free cash flow of $145.4 million.OutlookFor second-quarter fiscal 2026, the company expects revenues of $1.025 billion (+/- $50 million). Non-GAAP gross margin is projected to be within 48%-50%. Non-GAAP earnings are likely to be about $2.00 per share (+/- 25 cents).How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.The consensus estimate has shifted 19.67% due to these changes.VGM ScoresAt this time, Qorvo has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Qorvo has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Qorvo, Inc. (QRVO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks