Apple supplier Skyworks plummets after downbeat forecast, CEO switch

Inseego

06/02/2025 14:30

** Shares of chip co Skyworks Solutions  SWKS.O  plummet ~28%
premarket to $62.70 after dour current qtr forecast
    ** SWKS shares set to open at over 6-year low
** Apple  AAPL.O  supplier late Weds said expects rev declines
in its mobile segment and projected profits below estimates in
Q2
    ** "We anticipate a mid-to-high teens sequential decline in
mobile, consistent with historical seasonal patterns," CFO Kris
Sennesael said regarding Q2 outlook
    ** Also, co said current CEO Liam Griffin to step down and
be replaced by Inseego  INSG.O  exec chairman Philip Brace, who
began his career at Intel  INTC.O 
    ** At least 9 Wall Street analysts chop their PTs reacting
to the news, per LSEG; Stifel downgrades SWKS to 'hold' from
'buy', Mizuho cuts rating to 'neutral' from 'outperform'
    ** TD Cowen said in note Skyworks on earnings call indicated
its lead mobile customer AAPL decided to dual source RF (radio
frequency) components with a competitor, which the analysts
believe is Broadcom  AVGO.O , in upcoming iPhone 17 model
    ** Of 29 analysts covering SWKS, recommendation breakdown is
3 "strong buy" or "buy", 23 "hold" and 3 "sell" or "strong
sell"; median PT of $75 down from $110 on Nov 6 - LSEG
    ** Through Weds, stock has lost ~15% over the past year

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))