November 8, 2018 / 9:23 PM / 9 days ago

Skyworks first-quarter forecast disappoints, shares fall

(Reuters) - Skyworks Solutions Inc (SWKS.O) forecast first-quarter revenue and profit below analysts’ estimates, raising concerns of slowing demand for premium smartphones and sending its shares down 4 percent in extended trading.

The company forecast first-quarter adjusted earnings of $1.91 per share and revenue of $1 billion to $1.02 billion.

Analysts on average were expecting earnings of $2.08 per share and revenue of $1.07 billion, according to IBES data from Refinitiv.

Skyworks gets most of its revenue from selling radio frequency and other chips, which are used in smartphones made by Apple Inc (AAPL.O) and Samsung Electronics Co Ltd (005930.KS) among others.

Analysts have warned of cooling demand for smartphones in China, one of the biggest markets.

Global smartphone shipments declined 3 percent annually, recording 386.8 million units in the third quarter, according to the latest research from Counterpoint’s Market Monitor service.

Net income rose to $285.5 million, or $1.58 per share, in the fourth quarter ended Sept. 28 from $281.3 million, or $1.51 per share, a year earlier.

Revenue rose 2.4 percent to $1.01 billion, beating analysts’ average estimate of $1 billion.

Excluding certain items, Skyworks earned $1.94 per share, above estimates of $1.92.

Reporting by Sonam Rai in Bengaluru; Editing by Anil D'Silva

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