Skyworks Solutions anticipates a challenging start to the fiscal year, forecasting first-quarter revenue between $1.80 billion and $1.90 billion compared to Wall Street projections of $1.99 billion. Adjusted earnings are similarly expected to fall short at $1.25 per share against the estimated $1.52. Management expects a sequential decline in smartphone revenue in the low-teens percentage range. However, the company recently completed its acquisition of Qorvo, which is modeled to deliver substantial annual cost savings.
Key points
Smartphone revenue is projected to decline sequentially by a low-teens percentage due to…: Smartphone revenue is projected to decline sequentially by a low-teens percentage due to seasonal patterns and premium Android weakness.
First-quarter adjusted earnings are targeted at $1.25 per share, substantially trailing t…: First-quarter adjusted earnings are targeted at $1.25 per share, substantially trailing the $1.52 expected by analysts.
The completed acquisition of Qorvo is expected to generate at least $500 million in annua…: The completed acquisition of Qorvo is expected to generate at least $500 million in annual cost savings.
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Nov 3 : Skyworks Solutions forecast first-quarter revenue and profit below Wall Street expectations on Tuesday, signaling persistent weakness in its core smartphone business.
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Here are some details:
• The company forecast first-quarter revenue of $1.80 billion to $1.90 billion, below analysts' estimate of about $1.99 billion
• Skyworks projected first-quarter adjusted earnings per share of $1.25, below estimates of about $1.52, according to data compiled by LSEG
• Smartphone revenue is expected to decline in the low-teens percentage range sequentially, reflecting seasonal trends and weakness in the premium Android market
• Skyworks reported fiscal fourth-quarter revenue of $1.05 billion, compared with analysts' estimate of $1.04 billion
• The company said it completed the acquisition of Qorvo after the end of the fiscal fourth quarter and expects the combination to generate at least $500 million in annual cost savings
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