Qorvo, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Qorvo, Inc. (NASDAQ:QRVO) had a good week, as its shares rose 9.9% to close at US$69.81 following the release of its annual results. The result was positive overall - although revenues of US$3.7b were in line with what the analysts predicted, Qorvo surprised by delivering a statutory profit of US$0.59 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Qorvo's 22 analysts currently expect revenues in 2026 to be US$3.67b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 326% to US$2.54. Before this earnings report, the analysts had been forecasting revenues of US$3.67b and earnings per share (EPS) of US$2.24 in 2026. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Qorvo

There's been no major changes to the consensus price target of US$82.98, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Qorvo at US$128 per share, while the most bearish prices it at US$67.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past five years, revenues have declined around 0.4% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 1.2% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 16% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Qorvo to suffer worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Qorvo following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Qorvo going out to 2028, and you can see them free on our platform here.

You can also view our analysis of Qorvo's balance sheet, and whether we think Qorvo is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.