Qorvo (QRVO) stock fell Thursday after the chipmaker issued disappointing December-quarter guidance late Wednesday.
Qorvo shares were down 2.8%, near 72.35, in morning trading on the stock market today.
Two Wall Street firms downgraded Qorvo shares to neutral from buy after it reported earnings. Craig Hallum lowered its rating on Qorvo to hold from buy and cut its price target to 71 from 78. Northland Capital downgraded Qorvo to market perform from outperform.
Qorvo also received price-target cuts to its stock from at least two other brokerage firms: Cowen and Needham.
Qorvo reported better-than-expected September-quarter results late Wednesday, but came up short with its guidance for the current quarter. It expects to earn an adjusted $1.60 a share on sales of $840 million in the December quarter, based on the midpoint of its guidance. Analysts expected $1.74 and $897 million.
Cowen analyst Karl Ackerman called Qorvo’s report a “mixed bag.” The company’s guidance was disappointing, but its long-term demand drivers remain unchanged, he said in a report.
Qorvo’s shortfall in the December-quarter was likely related to major customer Apple (AAPL), which has been slow to ramp up production of its flagship iPhone X.
“The revenue outlook for the December-quarter came in $50 million below sell-side expectations on headwinds from Apple,” he said. “What is perplexing to us, however, is that the $50 million in lower revenue for the December quarter is not coming back in the March quarter — certainly not to the extent we (and others) had hoped given an improving backdrop for China, Huawei share gains and our view that iPhone demand is not perishable and any delay in builds should simply shift into the March quarter.”
Ackerman reiterated his market-perform rating on Qorvo and cut his price target to 80 from 85.
IBD’S TAKE: The IBD 50 list of top-performing growth stocks includes seven chip-industry players.
Elsewhere in the chip sector Thursday, Qualcomm (QCOM) received several price-target increases to its stock after its earnings report late Wednesday, while Impinj (PI) was smacked with a downgrade and a several price-target cuts following its earnings report.
Qualcomm stock was up 3%, near 55.05, in morning trading. It received price-target hikes from at least three Wall Street firms after it beat expectations with its fiscal fourth-quarter results.
Impinj tumbled 35%, near 21.40, in morning trading. It got price-target cuts from at least three brokerage firms and a downgrade to neutral from Piper Jaffray.
Meanwhile, Broadcom (AVGO) stock was down 0.3%, near 258.50, after the company announced Thursday that revenue in its fiscal fourth quarter ended Oct. 29 would be at the higher end of its guidance range.
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