Apple Supplier Skyworks Cuts Sales and Profit Forecasts
(Bloomberg) -- Skyworks Solutions Inc., a key Apple Inc. supplier, cut sales and profit forecasts late Tuesday.
Fiscal first-quarter revenue will be about $970 million, down from prior guidance of between $1 billion and $1.02 billion. Earnings, excluding certain items, will be $1.81 to $1.84 a share, versus a previous forecast of $1.91, the company said.
Chief Executive Officer Liam Griffin blamed the lowered outlook for the period ended Dec. 28 on "unit weakness across out largest smartphone customers." He didn’t mention Apple, but the iPhone maker is Skyworks’ biggest customer, accounting for about half of its revenue.
Skyworks gained more than 3 percent in extended trading after the update.
"People were expecting a lot worse," Woo Jin Ho, Bloomberg Intelligence senior analyst, said. "Some of the bad news was already baked in and things just seem to have gotten a little bit worse towards the end of the quarter."
Skyworks shares have lost about a quarter of their value since the beginning of November. The company, based in Woburn, Massachusetts, will report quarterly results on Feb. 5.
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