Skyworks shares plunge as weak smartphone market drags down performance outlook

Reuters, November 3 - Skyworks Solutions (SWKS.O) on Tuesday forecast that its first-quarter revenue and profit would fall short of Wall Street expectations, indicating continued weakness in its core smartphone business.

The chip maker's share price plunged more than 14% in after-hours trading.

Details are as follows:

• The company expects first-quarter revenue to be between $1.80 billion and $1.90 billion, below analyst estimates of around $1.99 billion

• According to data compiled by LSEG, Skyworks projects first-quarter adjusted earnings per share of $1.25, below expectations of about $1.52

• Smartphone revenue is expected to decline by double-digit percentage sequentially, reflecting seasonal trends and weakness in the high-end Android market

• Skyworks reported fiscal fourth-quarter revenue of $1.05 billion, while analysts had expected $1.04 billion

• The company said it completed the acquisition of Qorvo (link) after the close of the fourth fiscal quarter, and expects the combination to generate at least $500 million in annual cost savings

(To facilitate non-English speakers, Reuters provides automated translations of its reports in several languages. Due to potential errors in automated translations or missing context, Reuters does not guarantee the accuracy of the translated text, which is provided solely for reader convenience. Reuters is not liable for any damage or losses caused by the use of automated translation functionality.)