Skyworks Solutions forecasts quarterly results below estimates on weak auto demand

Skyworks Solutions

12/11/2024 23:42

Nov 12 (Reuters) - Apple supplier Skyworks Solutions
 SWKS.O  forecast first-quarter revenue and profit below Wall
Street estimates on Tuesday, indicating weak demand from
automotive and industrial clients.
    Shares of the California-based company fell 3.1% in extended
trading.
    Slowing sales of electric vehicles at a time when some
customers are clearing excess inventory have hit demand for
companies such as Skyworks Solutions.
    The company's customers include Amazon.com  AMZN.O  and
Apple  AAPL.O . It competes with chip firms such as NXP
Semiconductors  NXPI.O , Qorvo  QRVO.O  and Texas Instruments
 TXN.O .
    Skyworks forecast first-quarter revenue to be between $1.05
billion and $1.08 billion, the midpoint of which was below
analysts' average estimate of $1.10 billion, according to data
compiled by LSEG.
        The company expects adjusted profit per share of $1.57
for the first quarter ending in December, compared with
estimates of $1.72 per share.    
        Rival Qorvo also forecast third-quarter revenue and
profit below estimates in October, pressured by stiff
competition and a consumer shift toward entry-level smartphones.
  
    Meanwhile, demand for consumer electronics is expected to
increase in the upcoming holiday shopping period amid a recovery
in the smartphone market, driven by the launch of new
smartphones loaded with AI features.
    "We expect our mobile business to be up mid-single digits
sequentially, driven by seasonal product ramps," CFO Kris
Sennesael said in a statement.
    The company reported revenue of $1.02 billion in the fourth
quarter ended Sept. 27, which was in line with estimates.
    Adjusted profit per share for the quarter was $1.55,
compared with estimates of $1.52 per share. 

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed
Safi Shamsi)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))