Continue Reading Below
Shares of radio frequency solutions leader Qorvo (NASDAQ: QRVO) fell as much as 14.9% on Friday following the company's fiscal 2017 second-quarter earnings report. At the time of this writing, shares are down about 11.5%
Image source: Qorvo.
The stock's decline on Friday is likely related to a combination of mixed second-quarter results and weaker-than-expected guidance for Q3.
Qorvo reported revenue and adjusted earnings per share of $864.7 million and $1.29, respectively. While second-quarter revenue was well above a consensus analyst estimate for $835 million, analysts were expecting adjusted EPS of $1.41. The lower-than-expected profit comes as management admitted in its second-quarter earnings press release that Qorvo has "work to do on gross margin."
Furthermore, the company's outlook for third-quarter revenue in the range of $800 million to $840 million is below a consensus analyst estimate for third-quarter revenue of $844 million.
Qorvo has "taken steps to address" its weaker-than-expected gross profit margin, according to CEO Bob Bruggeworth in the company's second-quarter press release. Bruggeworth said the company is still aiming for "above-market revenue growth and non-GAAP operating income above 30%."
It also announced an authorization for up to $500 million of share repurchases, expanding on the company's prior program, which was set to expire today. The $500 million authorization includes about $159 million of authorized funds from the prior program.
A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.