Qorvo Inc. shares fell Thursday while the broader market rallied after analysts said inventory digestion will likely hamper the radiofrequency chip maker until the second half of the year. Qorvo
shares fell nearly 10% Thursday to an intraday low of $102.60, a drop of 6%. The S&P 500 index
meanwhile, was up more than 1%, and the tech-heavy Nasdaq Composite Index
was up nearly 3%.
Late Wednesday, Qorvo’s forecast an outlook for the March-ending quarter that fell well below the Wall Street consensus at the time. Cowen analyst Matthew Ramsay said the company was still working its way through a sharp inventory correction and that the March- and June-ending quarters will “likely be painful, despite already washed out expectations” with Apple Inc.
iPhone seasonality and a glut of components for phones using Alphabet Inc.’s
Android operating system. Ramsay, who has a market perform and a $100 price target, said that gross margins were being hit “by lower utilization as Android ecosystem continues to chew through inventory, with commensurate impact on EPS,” and called for “more of the same” before a potential snap-back by the end of September. Citi Resesrch analyst Atif Malik, who has a neutral rating and a $133 price target, said that decelerating 5G adoption and increased RF competition kept him on the sidelines. “Despite China sales picking up in the first three weeks of Jan on reopening, customers remain cautious for the fu …