Skyworks Solutions forecasts quarterly results below estimates on weak auto demand
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
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