Apple supplier Skyworks forecasts upbeat quarterly results on strong chip demand

Audio By Carbonatix

Enlarge

(Reuters) -Apple supplier Skyworks Solutions forecast fourth-quarter revenue and profit above Wall Street expectations on Tuesday, benefiting from steady demand for its analog chips amid economic uncertainty, sending its shares up around 10% in extended trading.

Demand for Skyworks’ chips has remained strong, supported by their applications across industries such as automotive and mobile, even as global trade tensions raise concerns over supply chain disruptions and rising 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,” CEO Phil Brace said.

Skyworks designs and manufactures analog and mixed-signal chips used in wireless communication, automotive, industrial and consumer electronics.

Earlier this year, the company named insider Robert Schriesheim as interim finance chief, after Mark Dentinger, who was initially set to assume the role, decided not to join.

Skyworks forecast fourth-quarter revenue between $1 billion and $1.03 billion, compared with analysts’ estimates of $887.4 million, according to data compiled by LSEG.

The company expects fourth-quarter adjusted earnings per share of $1.40, ahead of analysts’ expectations of 97 cents per share.

For the third quarter ended June 27, Skyworks reported revenue of $965 million, beating expectations of $940.9 million.

Profit per share for the quarter came in at 70 cents, compared with 75 cents per share a year earlier.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Mohammed Safi Shamsi)