Skyworks forecasts third-quarter revenue below estimates

(Reuters) - Apple supplier Skyworks Solutions forecast third-quarter revenue below Wall Street estimates on Tuesday on demand concerns, as clients struggle to offload excess inventory, sending its shares down 6% in extended trading. The chip company forecasts revenue of $900 million, plus or minus 2%, in the third quarter, below analysts' average estimate of $1.02 billion, according to LSEG data.

It expects adjusted earnings of $1.21 per share for the third quarter.

The company sees its "mobile business to be down sequentially, below normal seasonal patterns, as excess inventory clears. In broad markets, we anticipate further modest growth as inventory levels appear to be normalizing in certain end markets" in the third quarter, according to Skyworks' CFO Kris Sennesael. Skyworks gets most of its revenue from selling radio frequency and other chips used in smartphones made by Apple and Samsung Electronics, among others.

Global smartphone shipments increased 7.8% to 289.4 million units during January-March, with Samsung, at 20.8% market share, clinching the top phonemaker spot from Apple, data from research firm IDC showed earlier in April.

Apple's smartphone shipments dropped about 10% in the first quarter of 2024, according to IDC. Skyworks' revenue for the quarter ended March 29 was $1.05 billion, in line with analyst estimates.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)