Skyworks Solutions forecasts higher revenue on strong chip demand
Semiconductor chips are seen on a printed circuit board in this illustration on Feb 17, 2023. (Illustration: Reuters/Florence Lo)
May 5 : Skyworks Solutions forecast quarterly revenue above estimates on Tuesday, betting on strong demand for its radio-frequency chips used in premium smartphones.
Shares of the Irvine, California-based company rose more than 1 per cent in extended trading.
• Skyworks, which sells analog and mixed-signal wireless communication chips to customers across the automotive, industrial and consumer electronics sectors, is a key supplier of radio-frequency components for Apple's 5G iPhones.
• Last month, Apple forecast sales growth above Wall Street estimates, betting on demand for the iPhone 17 as it fends off supply chain pressures and rising memory chip prices.
• Skyworks expects third-quarter revenue between $900 million and $950 million, compared with analysts' average estimate of $861.3 million, according to data compiled by LSEG.
• Quarterly adjusted profit is expected to be $1.03 per share at the midpoint of the forecasted revenue range, compared with estimates of 93 cents per share.
• “Mobile outperformed expectations on healthy demand, while Broad Markets continues to accelerate, delivering double-digit year-over-year growth driven by Wi-Fi, data center and automotive,” CEO Phil Brace said.
• The radio chipmaker reported second-quarter revenue of $943.7 million, compared with estimates of $899.3 million.
• Adjusted profit for the quarter came in at $1.15 per share, beating estimates of $1.03 per share.
