Skyworks Solutions Shares Drop After Weak Revenue Forecast

Skyworks Solutions shares declined more than 14% in extended trading on Tuesday following the release of first-quarter financial forecasts that fell short of analyst expectations. The chipmaker projected revenue between $1.80 billion and $1.90 billion, missing the $1.99 billion estimate, and adjusted earnings per share of $1.25, below the estimated $1.52.

Company leadership attributed the weak outlook to seasonal trends and persistent weakness in the core smartphone business, particularly within the premium Android market. Skyworks expects smartphone revenue to decline in the low-teens percentage range sequentially.

Despite the forward-looking projections, the company reported fiscal fourth-quarter revenue of $1.05 billion, which slightly exceeded estimates. Skyworks also announced it completed the acquisition of Qorvo following the fourth quarter. The company projects that this merger will generate at least $500 million in annual cost savings.