Qorvo Inc. stock fell nearly 8% in after-hours trading Wednesday, following a holiday revenue forecast that came in light amid supply constraints in the semiconductor sector.
Chief Financial Officer Mark Murphy cited “ongoing supply challenges and other factors impacting global smartphone demand” in guiding for a sequential revenue decline in the holiday quarter for the maker of radio-frequency chips and other components, but said executives expect the issue to ease before the next quarter.
Murphy predicted fiscal third-quarter adjusted earnings of $2.75 a share at the midpoint on revenue of $1.09 billion to $1.12 billion, while analysts on average were expecting adjusted earnings of $3.26 a share on sales of $1.25 billion, according to FactSet.
For the fiscal second quarter, Qorvo surpassed expectations in Wednesday’s report. The company reported earnings of $319.2 million, or $2.84 a share, on sales of $1.26 billion, up from $1.06 billion a year ago. After adjusting for stock-based compensation and other effects, the company reported earnings of $3.42 a share, up from $2.43 a share a year ago.
Qorvo also disclosed the acquisition of United Silicon Carbide, which makes silicon-carbide, or SiC, power semiconductors. The company did not disclose a purchase price in the announcement.
Shares fell 7.9% in after-hours trading. Qorvo stock has struggled in the past three months, falling more than 8%, after strong growth heading into the past quarter, with shares still up 38.7% in the past year. The S&P 500 index
has grown by 4.7% in the past three months and 37.4% in the past year.