Apple supplier Skyworks Solutions projected fourth-quarter revenue and profit above Wall Street expectations on Tuesday, fueled by steady demand for its analog chips despite global economic uncertainties. The upbeat outlook sent shares up around 10% in extended trading.
Demand for Skyworks’ chips has remained resilient, thanks to their broad applications across mobile, automotive, and industrial sectors, even as global trade tensions spark worries over supply chain disruptions and rising production costs.
“We’re encouraged by the momentum in mobile and steady strength across our broad markets, driven by long-term growth trends in edge IoT, automotive and data center,” said CEO Phil Brace.
Skyworks designs and manufactures analog and mixed-signal chips used in wireless communication, automotive, industrial, and consumer electronics products.
Earlier this year, the company appointed Robert Schriesheim as interim finance chief, following the unexpected decision by Mark Dentinger, who was initially set to take the role, not to join the company.
Skyworks forecast Q4 revenue between $1 billion and $1.03 billion, well above the $887.4 million expected by analysts, according to data from LSEG.
The company also expects Q4 adjusted earnings per share of $1.40, surpassing analysts’ forecasts of 97 cents per share.
For the third quarter ended June 27, Skyworks reported $965 million in revenue, beating estimates of $940.9 million. Profit per share came in at 70 cents, down slightly from 75 cents per share a year earlier.
“Skyworks delivered another strong quarter, with revenue up 7% year-over-year and both gross margin and non-GAAP EPS exceeding the high-end of our guidance,” said Phil Brace, chief executive officer and president of Skyworks. “We’re encouraged by the momentum in Mobile and steady strength across our Broad Markets, driven by long-term growth trends in edge IoT, automotive and data center.”
“For the September quarter, we anticipate revenue of $1.00 billion to $1.03 billion, with non-GAAP diluted earnings per share of $1.40 at the mid-point of the revenue range,” said Rob Schriesheim, interim chief financial officer of Skyworks.
“Mobile remains healthy, with solid order patterns and projected sequential growth of mid-single digits. Broad Markets is on track for another quarter of sequential growth and accelerating year-over-year performance.”
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