May 5 - Skyworks Solutions projected quarterly revenue above market expectations on Tuesday, attributing the outlook to continued strength in demand for its radio-frequency (RF) chips used in premium smartphones. The Irvine, California-based supplier's shares rose just over 1% in extended trading following the update.
Skyworks, which designs and sells analog and mixed-signal wireless communication chips across automotive, industrial and consumer electronics end markets, remains a significant vendor of radio-frequency components for Apple's 5G iPhones. The company said the combination of healthy mobile demand and expanding momentum in other end markets underpins its forecast.
Management announced a third-quarter revenue range of $900 million to $950 million, above the analysts' average estimate of $861.3 million compiled by LSEG. At the midpoint of that revenue outlook, Skyworks expects adjusted earnings of $1.03 per share, compared with consensus estimates of $0.93 per share.
For the second quarter, Skyworks reported revenue of $943.7 million, beating estimates of $899.3 million. Adjusted earnings for the quarter came in at $1.15 per share, ahead of expectations of $1.03 per share.
CEO Phil Brace summarized the company's performance and outlook, saying: "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." That commentary underscores management's view that growth drivers extend beyond handset RF components.
The company noted the contribution of multiple end markets to recent results and guidance, without changing the factual details provided for revenue guidance, quarterly profit expectations or the reported second-quarter results.
Key points
- Skyworks guided third-quarter revenue of $900 million to $950 million, above LSEG consensus of $861.3 million.
- Adjusted EPS guidance at the midpoint is $1.03, versus analyst estimates of $0.93.
- Second-quarter revenue was $943.7 million and adjusted EPS was $1.15, both exceeding estimates.
Sectors impacted
- Semiconductors and chipmakers - direct supplier performance and revenue trends.
- Consumer electronics - handset demand influences RF component shipments.
- Automotive and data centers - supporting growth noted in Broad Markets.
Risks and uncertainties
- Demand volatility in mobile devices could affect future revenue, as guidance relies on continued strength in premium smartphone RF components.
- Supply chain pressures and rising memory chip prices cited in the market context can influence handset-related demand and component costs.
- Broad Markets acceleration is a key driver; any slowdown in Wi-Fi, data center or automotive end markets could weigh on growth.
All numerical guidance, quarterly results and executive commentary in this report are presented as provided by the company and compared to the analyst estimates referenced. No additional forecasts or outside data have been introduced.