Qorvo Earnings: Can RF Micro Devices-TriQuint Merger Drive Strong Results?

Correction: Qorvo reported Q4 earnings on May 6, 2015. The initial version of this article incorrectly stated the company would report on June 22, 2015, and incorrectly previewed the report. The next estimated reporting date for Qorvo is July 23, 2015. 

Although Qorvo Inc QRVO started trading in the Nasdaq exchange on January 2, 2015, it is actually not a new company. Qorvo is the new name given to the firm created when RF Micro Devices, Inc. RFMD and TriQuint Semiconductor TQNT merged.

The chart above features RF Micro Devices’ earnings and estimates for the first seven quarters, and Qorvo’s combined earnings for the last two quarters.

Related Link: The Latest Stock Picks From Cliff Asness, AQR Capital's 13F

For the fourth quarter, the Street is modeling consensus earnings of $0.86 per share on revenue of $621.27 million. The crowd is more bullish and is projecting consensus earnings of $0.93 per share on revenue of $629.8 million.

While current estimates imply a marked increase from the earnings of $0.12 per share and revenue of $256 million that RF Micro Devices posted a year ago, they also bring a double-digit decline from last quarter’s earnings of $1.18 per share on revenue of $741 million.

Related Link: PacCrest Reiterates Qorvo At 'Overweight'

Why Overweight Qorvo

In a recent report, analysts at Pacific Crest Securities issued an Overweight rating and $80 price target on shares of Qorvo. "We see a favorable risk/reward ahead of earnings and would be opportunistic buyers of QRVO," they said.