(Reuters) – Apple supplier Skyworks Solutions on Monday forecast fourth-quarter profit below Wall Street estimates as demand for wireless connected devices from customers outside the artificial intelligence (AI) industry remains gloomy.
All the major markets for chips – including smartphones, PCs and data centers – have shrunk this year, as both corporate customers and consumers scale back spending amid a weak global economy, high inflation and higher borrowing costs.
Apple – Skyworks’ largest customer – last week predicted its sales would fall for a fourth straight quarter, dragged down by weak demand for its flagship device.
Chipmaker Skyworks said it expects fourth-quarter adjusted earnings of $2.10 per share, slightly below market estimates of $2.11 per share, according to Refinitiv data.
It anticipates fourth-quarter revenue between $1.19 billion and $1.24 billion, the mid-point of which was in-line with analysts’ average estimates of $1.22 billion.
Shares of the company fell 1.6% in trading after the bell.
Excluding items, Skyworks posted profit of $1.73 per share in the third quarter ended June 30, above estimates of $1.70, according to Refinitiv data. It reported revenue of $1.07 billion, in-line with market estimates.
Its adjusted net income fell to $276.3 million from $393.6 million a year earlier.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)
