Skyworks Solutions falls as it forecasts decline across its segments in second quarter

Asustek Computer

05/02/2025 22:17

Feb 5 (Reuters) - 
    Apple supplier  AAPL.O  Skyworks Solutions  SWKS.O  forecast
declines in revenue across both its segments and projected
profits below Wall Street estimates for the current quarter on
Wednesday.
  
    Shares of the California-based company were more than 20%
lower in extended trading.
    Separately, the company said it had named former Intel
 INTC.O  and Inseego  INSG.O  executive Philip Brace as its next
CEO and president as part of a succession process to replace
former chief Liam Griffin.
    Slower-than-expected adoption of electric vehicles, leading
to an excess chip inventory, has weighed on the results of
analog chipmakers such as Skyworks.
    "We anticipate a mid-to-high teens sequential decline in
mobile, consistent with historical seasonal patterns. In broad
markets, we expect additional sequential and year-over-year
growth," CFO Kris Sennesael said in a statement.
    Skyworks forecast second-quarter revenue to be between $935
million and $965 million, largely in line with estimates.
    The company designs and manufactures analog and mixed-signal
chips used in wireless communication, automotive, industrial and
consumer electronics.
    Skyworks rival chip firm NXP Semiconductors  NXPI.O  also
forecast lower-than-expected revenue for the first quarter due
to slow demand from its automotive and industrial clients.
    Skyworks' revenue in the fiscal first quarter ended December
27, was $1.07 billion, in line with estimates, while the
adjusted profit of $1.60 per share beat estimates of earnings of
$1.57 per share, according to data compiled by LSEG.
    It also forecast an adjusted profit of $1.20 per share for
the March quarter, lower than analysts' average estimate of
$1.22 per share in profit.

 (Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing
by Mohammed Safi Shamsi)
 ((Priyanka.G@thomsonreuters.com;))