Apple Supplier Qorvo’s Stock Swings After Q4 Beat As Revenue Guidance From Largest Customer Disappoints Wall Street: Retail Bears Down

synopsis

Qorvo Inc. (QRVO) shares witnessed a volatile session on Wednesday after the company posted better-than-expected earnings for its fourth quarter of fiscal 2024 but disappointed investors with revenue expectations from its largest customer.

However, retail sentiment on Stocktwits turned bearish following a mixed reaction from analysts, with several firms lowering price targets despite the earnings beat.

The stock initially surged over 13% after the earnings release but quickly reversed course during the company's earnings call. 

CEO Robert Bruggeworth’s comments regarding flat sales expectations for Qorvo’s largest customer in fiscal 2026 weighed on investor sentiment. 

“For FY 2026, we’re currently forecasting revenue at our largest customer to be flat to up modestly,” he said.

While he did not name the customer, Apple (AAPL) accounted for just over half of Qorvo’s revenue in the December quarter and is the company’s largest customer.

Qorvo reported third-quarter earnings per share (EPS) of $1.61, surpassing analyst estimates of $1.21, according to Koyfin.

Revenue declined 14.7% year-over-year to $916.3 million but still exceeded the consensus forecast of $911 million.

For the fourth quarter, Qorvo expects revenue between $825 million and $875 million, slightly above the $841.2 million consensus estimate. 

EPS guidance for Q4 ranges from $0.90 to $1.10, compared to analysts’ forecast of $0.86.

Bruggeworth noted that Qorvo is executing strategic initiatives aimed at expanding margins, generating free cash flow, and increasing shareholder value. 

In December, Qorvo restructured its support for Android 5G, including workforce reductions and a focus shift to premium and flagship tiers to enhance profitability. Its 5G development spending is now concentrated on these high-end segments.

However, analysts remain cautious about its transition away from mid-tier Android smartphones and the ongoing impact on revenue.

Analyst Reactions

• Citi lowered its price target to $69 from $72 and maintained a ‘Sell’ rating, citing flat fiscal 2026 revenue guidance that lags Wall Street estimates.
• UBS cut its target to $85 from $90, keeping a ‘Neutral’ rating. Analyst Timothy Arcuri said Qorvo’s decision to exit the mid-tier Android market in China is strategically sound but will take time to yield results.
• TD Cowen raised its target to $90 from $85 while maintaining a ‘Hold’ rating, noting that Qorvo’s transition away from the mid-tier Android market remains a key headwind.
• Loop Capital increased its target to $90 from $80 but held a ‘Hold’ rating, citing muted smartphone demand and limited upside catalysts.

Qorvo Sentiment and Message Volume on Jan.29 as of 1:10 p.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Qorvo dipped into the ‘bearish’ territory from ‘neutral’ a day ago as chatter spiked to ‘extremely high’ levels. 

Some traders speculated that the stock was being manipulated due to its intraday volatility, while others expressed frustration over Bruggeworth’s comments on Apple-related sales.

The stock dipped over 16% in the last year but has recuperated this year, with gains of almost 25% so far in 2025.

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