Qorvo Cuts Fourth-Quarter Revenue Guidance on Coronavirus Impact

Chipmaker Qorvo cut its fourth-quarter guidance Tuesday as the spreading coronavirus rocked supply chains and customer demand.
Publish date:

Semiconductor maker Qorvo (QRVO) - Get Report reduced the Apple (AAPL) - Get Report supplier's fourth-quarter guidance Tuesday, warning that the spreading coronavirus had rocked the smartphone supply chain and customer demand more than expected.

Shares of Qorvo nonetheless were higher by 1.7% to $102.

The Greensboro, N.C., company now expects fourth-quarter revenue to total about $770 million, $50 million short of the midpoint range of $800 million to $840 million that Qorvo forecast on Jan. 29.

Analysts had been calling for revenue of $726.4 million.

The "full impact of Covid-19 remains difficult to forecast given the uncertainty of the magnitude, duration and geographic reach of the outbreak," the company said in a statement.

Qorvo is scheduled to report its fourth-quarter results on or about May 5.

Coronavirus cases have risen past 90,000, with nearly 11,000 outside China, where it originated. Governments are scrambling to contain its rapid spread.

On Tuesday, G-7 leaders pledged to take all possible steps to safeguard the global economy from shocks related to the spread of the virus. But they stopped short of offering coordinated interest rate cuts to support financial markets.

"Given the potential impacts of Covid-19 on global growth, we reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks," the G-7 statement said. 

"Alongside strengthening efforts to expand health services, G-7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase."

In January, Qorvo reported adjusted fiscal-third-quarter earnings per share of $1.86, up from $1.85 a year earlier. Analysts had forecast earnings of $1.67 a share for the three-month period.