Skyworks forecasts third-quarter revenue below estimates
30/04/2024 21:57
April 30 (Reuters) - Apple supplier Skyworks Solutions
SWKS.O forecast third-quarter revenue below Wall Street
estimates on Tuesday on demand concerns, as clients struggle to
offload excess inventory, sending its shares down 6% in extended
trading.
The chip company forecasts revenue of $900 million, plus or
minus 2%, in the third quarter, below analysts' average estimate
of $1.02 billion, according to LSEG data.
It expects adjusted earnings of $1.21 per share for the
third quarter.
The company sees its "mobile business to be down
sequentially, below normal seasonal patterns, as excess
inventory clears. In broad markets, we anticipate further modest
growth as inventory levels appear to be normalizing in certain
end markets" in the third quarter, according to Skyworks' CFO
Kris Sennesael.
Skyworks gets most of its revenue from selling radio
frequency and other chips used in smartphones made by Apple
AAPL.O and Samsung Electronics 005930.KS , among others.
Global smartphone shipments increased 7.8% to 289.4 million
units during January-March, with Samsung, at 20.8% market share,
clinching the top phonemaker spot from Apple, data from research
firm IDC showed earlier in April.
Apple's smartphone shipments dropped about 10% in the first
quarter of 2024, according to IDC.
Skyworks' revenue for the quarter ended March 29 was $1.05
billion, in line with analyst estimates.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
((Juby.Babu@thomsonreuters.com;))