An estimates-beating quarter couldn't save Qorvo (NASDAQ: QRVO) from being heavily punished by the market over the past five trading days.
Despite the beats, investors -- not to mention professional Qorvo watchers -- clearly didn't like what they saw with the company's fiscal second quarter of 2025 performance, and many bailed from the stock. According to data compiled by S&P Global Market Intelligence, this left it with a more-than 27% price drop over the week.
Fundamental performance when matched against analyst estimates is certainly worth considering for any stock, but let's remember that it isn't everything. Case in point: Qorvo's latest-reported quarter.
For the period, the company, which is probably best known as a supplier of advanced-smartphone chips to iDevice maker Apple, saw a 57% year-over-year revenue decline (to just over $1 billion). This feels like exactly the opposite direction a supplier of goods for a durably popular product line should be traveling. Likewise for net income, which suffered a similar (56%) tumble, landing with a thud at slightly below $180 million.
Now, to be charitable to Qorvo, both figures came in among the consensus-pundit projections. But for the discerning investor, that simply isn't enough to compensate for the fact that both the top and bottom lines saw worrying and heavy falls.
Those declines especially didn't escape the notice of the clutch of analysts tracking Qorvo's stock. More than a few of them rapidly lowered their price targets on its shares or even downgraded their recommendations entirely. According to sources, one of the downgrading parties, Raymond James, said the company's potential remains high; however, an apparent move away from its smaller Android market will likely continue to dampen performance.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Qorvo. The Motley Fool has a disclosure policy.