Nov 4 (Reuters) - Skyworks Solutions ( SWKS ) forecast
first-quarter revenue and profit above Wall Street estimates on
Tuesday, signaling robust demand for its radio-frequency chips
used in Apple's ( AAPL ) latest 5G iPhones.
The rapid adoption of 5G smartphones and launch of
AI-enabled phones has benefited Skyworks, which is a key
provider of radio-frequency chips for 5G. It is also a major
beneficiary of Apple's ( AAPL ) annual iPhone launch.
Last month, Apple ( AAPL ) forecast holiday-quarter iPhone sales and
overall revenue that surpassed Wall Street expectations, powered
by orders for iPhone 17 models that the company is racing to
fulfill amid continuing supply constraints.
"In mobile, underlying demand trends remain solid, supported
by healthy sell-through and new product launches. Looking ahead,
we expect rising AI-driven data traffic to drive greater
radio-frequency complexity," said CEO Phil Brace.
Growth in Skyworks' broad markets segment, which supplies
chips for automotive, industrial and Internet of Things (IoT)
applications, is being driven by trends like WiFi 7 adoption,
connected vehicles and AI-driven upgrades.
Last month, Skyworks announced a cash-and-stock offer to buy
smaller rival Qorvo ( QRVO ), creating a $22 billion radio-chip
giant. The deal values Qorvo ( QRVO ) at $9.76 billion. The two companies
are major suppliers to Apple ( AAPL ) and other smartphone firms, where
their chips help to handle the radio signals that carry wireless
data.
Skyworks forecast first-quarter revenue between $975 million
and $1.03 billion, compared to analysts' estimate of $858.3
million, according to data compiled by LSEG.
It expects adjusted profit of $1.40 per share for the
quarter, ahead of the average estimate of 94 cents per share.
Skyworks' revenue for the fourth quarter, ended October 3,
came in at $1.10 billion, beating estimates of $978.2 million.