Shares of Qorvo, Inc. (NASDAQ:QRVO) popped today after the company said yesterday that it was increasing its earnings and revenue guidance for the second quarter. Investors pushed up Qorvo's stock by as much as 10.2% today.
As of 2:05 p.m. EDT, Qorvo's stock was up 7.6%.
Qorvo's management said in a press release yesterday that "During the September quarter, broad-based mobile demand for Qorvo's advanced 4G and 5G mobile products is exceeding the company's original expectations."
As a result, the company now estimates that its revenue for the quarter will be in the range of $1 billion to $1.03 billion, up from the previous range of $925 million to $955 million.
Additionally, Qorvo's management now estimates that second-quarter diluted earnings per share will be $2.14 at the midpoint of guidance, up from the previous estimate of $1.90 per share.
Investors were clearly happy to see that Qorvo is growing faster in the current quarter than the company initially expected, and pushed up the company's stock as a result.
Qorvo's stock hasn't benefited in the same ways that many tech stocks have this year. The radio-frequency solutions company saw its share price tumble back in March, along with most stocks, but hasn't made the same gains since then. Qorvo's shares are only up 6.1% this year, barely surpassing the S&P 500's 5.7% gains. With the broader market still experiencing volatility because of COVID-19 and the U.S. recession, investors should expect more volatility from Qorvo's stock in the short term.