Qorvo Inc. (QRVO) proved once again that beating expectations doesn't always mean much if your forward guidance disappoints. Shares dropped 7.80% in after-hours trading Tuesday despite solid third-quarter results, closing at $76.35.

The Good News Nobody Cared About

Qorvo's fiscal third-quarter numbers looked pretty decent on paper. Revenue hit $993 million, edging past the $987.74 million analysts expected. Adjusted earnings came in at $2.17 per share, blowing past the $1.85 estimate. Gross margin reached 46.7% on a GAAP basis and 49.1% on a non-GAAP basis, with operating income totaling $247.6 million.

"Qorvo's December quarterly revenue primarily reflects strength at our largest customer. Each of our operating segments grew revenue year-over-year, with notable strength in automotive components, consumer and enterprise Wi-Fi, D&A, base station and power management," said Bob Bruggeworth, president and CEO of Qorvo.

Then Came the Outlook

Here's where things went sideways. Qorvo expects fiscal fourth-quarter revenue between $775 million and $825 million, nowhere near the $904.59 million analysts were forecasting. Adjusted earnings guidance of $1.05 to $1.35 per share also missed estimates calling for $1.37.

"Looking forward, our March quarterly outlook reflects the seasonal decline at our largest customer, the ongoing strategic resizing of our Android business, and continued strength in HPA," Bruggeworth explained.

Translation: their biggest customer (widely believed to be Apple) is dialing back orders, they're deliberately pulling back from Android smartphone chips, and the high-performance analog business is holding up but can't offset the weakness elsewhere. The company's management team was scheduled to discuss the results further on a conference call at 4:30 p.m. ET.