The market’s re-evaluation of technology valuations will continue today after three firms posted their quarterly results.
Qorvo (QRVO) reported quarterly non-GAAP EPS of $0.87. Revenue increased by 36.2% Y/Y to $886.7 million. The firm expects to post revenue of around $1.025 billion, a non-GAAP gross margin of 46% – 47%, and non-GAAP EPS of $1.75 – $1.95.
QRVO stock will likely return to a trading range of $110 – $120 in the quarter ahead. The stock trades at fair value.
Arista Networks (ANET) will rise slightly this morning after posting Q2 non-GAAP EPS of $2.10. Revenue grew by 15.8% Y/Y to $1.69 billion. ANET stock is not rallying with high conviction since markets already priced in its high growth rate. Fortunately, the firm issued a strong Q3 outlook. It expects gross margin of up to 64%.
Skyworks Solutions (SWKS) will open slightly lower, down by around 2%, despite posting meeting expectations. The company reported revenue falling by 15.3% Y/Y to $906 million. Ahead of the report, SWKS stock already broke out from a $90 support price in May. Investors should wait for markets to take the stock down to $110.
Your Takeaway
Sentiment shifted toward that of caution. SWKS, QRVO, and ANET stock are already priced for perfection. Patient investors may wait for a lower buying price.
