(Reuters) – Wireless connectivity chip maker Qorvo projected second-quarter revenue above market estimates on Wednesday, as it expects more business from its biggest customer, Apple.
Shares of the Greensboro, North Carolina-based company rose 4.2% in aftermarket trading.
“In the September quarter, we expect improved financial performance supported by content gains at our largest customer,” CEO Bob Bruggeworth said.
As a result, the company expects revenue in the second quarter to increase sequentially by over 50% and expects year-over-year revenue growth in fiscal 2024.
Qorvo makes radio-frequency chips used in 5G base stations, as well as for cellular and WiFi connectivity in smartphones and other gadgets. Apple contributed 37% to the company’s total revenue in fiscal 2023, ended April.
Qorvo said it expected revenue of about $1 billion, plus or minus $15 million, for the second quarter, which was above analysts’ expectations of $959.8 million.
Its forecast for adjusted earnings per share of about $1.75 was also above expectations of $1.62 per share.
In the first quarter, the company reported revenue of $651.2 million. Analysts on an average had expected revenue of $639.8 million.
On an adjusted basis, it earned 34 cents per share, compared with a profit estimate of 15 cents per share, according to Refinitiv data.
(Reporting by Zaheer Kachwala; Editing by Pooja Desai)
