Qorvo (QRVO): $1B TAM Squeeze & 4 Key Challenges—Why We Have Little Optimism for Android Market Recovery & GM Targets—What’s the Impact, Outlook & its key Catalysts ?

$50.00 — or $120.00 / year

Qorvo delivered Q2 FY2025 revenue of $1.05 billion, up 18% sequentially but down 5% year-over-year, beating expectations by $18.92 million, with adjusted EPS of $1.88 surpassing estimates by $0.03. However, GAAP EPS registered a loss of $0.18 due to non-cash and restructuring charges. While strong HPA and CSG growth (28% of revenue, up from 23%) highlights diversification, Android TAM contraction by ~$1 billion, driven by a shift to entry-tier 5G devices, has significantly reduced Qorvo’s mobile addressable market, eroding mid-tier revenues by 75% from peak levels and contributing to Android revenue declines of 50%. Gross margins compressed to 47%, with further declines to 45% expected in Q3 due to factory underutilization and mix challenges. Near-term headwinds include declining RF content in flagship devices, underwhelming iPhone performance, and Huawei’s resurgence, which add pressure to Android and iOS segments. Strategic cost realignments, including GaAs and BAW transitions and non-core divestitures, aim to mitigate gross margin impacts and drive long-term profitability. Despite fiscal 2025 revenue now expected to decline, free cash flow of $95 million and $81 million in buybacks in Q2 underscore Qorvo’s capital discipline. Can Qorvo regain RF content in flagship devices, stabilize factory utilization, and capitalize on HPA and CSG growth to offset mobile market declines and achieve sustainable margin recovery?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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