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Qorvo Investors Still Positive Despite Huawei-Driven Guidance Cut

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Qorvo Investors Still Positive Despite Huawei-Driven Guidance Cut

Qorvo Inc (NASDAQ: QRVO) shares were in the green Tuesday despite a guidance update from the American semiconductor company that reflects the Department of Commerce's restrictions on sales to the Chinese company Huawei. 

The stock was trading up by 2.28 percent at $62.67 at the time of publication. 

Huawei accounted for about 15 percent of Qorvo's revenue in the fiscal year ended March 30, Qorvo said Tuesday. 

Qorvo's first-quarter guidance now assumes no sales to Huawei and revenue that's roughly flat sequentially. 

The quarterly revenue guidance was adjusted downward from a range of $780 million to $800 million to a range of $730 million to $750 million. The gross margin guidance was taken from a range of 45-45.5 percent to approximately 45.5 percent. 

The diluted earnings per share projection was taken from $1.30 at the midpoint of guidance to $1.15. 

Qorvo said it is not providing any additional update to its fiscal 2020 guidance at this time due to the ongoing uncertainty of the situation. 

Related Links: 

Wall Street Weighs In On Qorvo's Impressive Quarter

KeyBanc Downgrades Qorvo On Failure To Qualify For New iPhone

Photo by M.O. Stevens/Wikimedia

Posted-In: HuaweiNews Guidance Best of Benzinga

 

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