Qorvo forecasts Q3 profit, revenue above estimates on smartphone market recovery

(Reuters) - Wireless connectivity chip maker Qorvo forecast third-quarter revenue and adjusted profit above Wall Street estimates on Tuesday, expecting a boost from its largest customer Apple ahead of an expected recovery in the smartphone market.

The company's shares rose 1.3% in extended trading.

Qorvo makes radio-frequency chips used in 5G base stations, as well as for cellular and WiFi connectivity in smartphones and other gadgets.

The Greensboro, North Carolina-based company's biggest customer is Apple, which contributed 37% to the company's total revenue in fiscal 2023, ended April.

The smartphone market is expected to recover after seeing a 0.1% decline in the September quarter, data from the IDC showed.

Qorvo expects third-quarter adjusted profit of about $1.65 per share. Analysts were expecting $1.62 per share, according to LSEG data.

The company sees third-quarter revenue of about $1 billion, plus or minus $25 million, compared with LSEG estimates of $992 million.

Qorvo's revenue for the quarter ended Sept. 30 was $1.103 billion, while adjusted profit was $2.39 per share compared with analysts' estimate for revenue of $1 billion and adjusted profit of $1.77 per share.

(Reporting by Tanya Jain in Bengaluru; Editing by Krishna Chandra Eluri)