There's been a notable change in appetite for Qorvo, Inc. (NASDAQ:QRVO) shares in the week since its full-year report, with the stock down 18% to US$95.67. It was a pretty bad result overall; while revenues were in line with expectations at US$3.8b, statutory losses exploded to US$0.72 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Qorvo's 20 analysts are now forecasting revenues of US$3.89b in 2025. This would be a satisfactory 3.3% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Qorvo forecast to report a statutory profit of US$3.02 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.13b and earnings per share (EPS) of US$3.95 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
The analysts made no major changes to their price target of US$112, suggesting the downgrades are not expected to have a long-term impact on Qorvo's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Qorvo, with the most bullish analyst valuing it at US$128 and the most bearish at US$82.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.3% growth on an annualised basis. That is in line with its 3.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So it's pretty clear that Qorvo is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Qorvo. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Qorvo analysts - going out to 2027, and you can see them free on our platform here.
You can also view our analysis of Qorvo's balance sheet, and whether we think Qorvo is carrying too much debt, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.