(Reuters) – Wireless connectivity chipmaker Qorvo forecast fourth-quarter revenue and profit above Wall Street estimates on Wednesday, anticipating a rebound in the smartphone market.
Shares of Greensboro, North Carolina-based company rose more than 5% after the bell.
Qorvo primarily supplies radio frequency solutions to Apple, its largest customer accounting for about 37% of its total revenue in fiscal 2023, and world’s largest memory chip maker Samsung Electronics.
A recovery in mobile handset and stabilizing Android markets have driven demand for products offered by companies such as Qorvo and its rival Skyworks Solutions as users migrate to 5G.
Samsung said on Tuesday its mobile devices business booked a 2.73 trillion won ($2.05 billion) operating profit in the fourth quarter, up from 1.7 trillion won a year earlier on stronger demand for pricier smartphones.
Moreover, Apple ended Samsung’s 12-year run as the world’s top seller of smartphones in 2023, snaring a 20% market share as demand for premium phones outpaced those of more affordable models, according to a report from International Data Corp.
Qorvo expects fourth-quarter revenue of about $925 million, plus or minus $25 million compared with analysts’ average estimate of $913.1 million, according to LSEG data.
The company expects adjusted profit of about $1.20 per share for fourth-quarter ending in March, compared with analysts’ average estimate of $1.17 per share.
It posted revenue of $ 1.07 billion for the third-quarter ended Dec. 30, while adjusted profit came in at $2.10 per share compared with analysts’ estimate for revenue of $1 billion and adjusted profit of $1.66 per share.
Separately, Qorvo said it would acquire Boston, Massachusetts-based Anokiwave, which provides chips for wireless communication. The transaction is expected to close in March quarter.
($1 = 1,333.8100 won)
(Reporting by Jaspreet Singh in Bengaluru)
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