Chipmaker Skyworks Solutions forecasts weak outlook, shares fall

(Reuters) -Apple supplier Skyworks Solutions forecast first-quarter revenue below estimates on Thursday, on demand concerns as clients struggle to offload excess inventory, sending shares down 5% in extended trading.

While demand at its smartphone business stabilized, Skyworks said it expects other sectors to remain weak.

The company, in its investor call, said it did not see a big impact from the launch of Huawei's Mate 60 phone launch in August, as it sought to allay investor worries of a hit to market share amid increased competition from domestic chip makers in China.

Apple CEO Tim Cook on Thursday also insisted the company's new iPhone 15 models were doing well in China, citing a record September quarter for the devices in the region.

Skyworks rivals Qorvo and Qualcomm, both of which produce chips for smartphones, forecast upbeat current-quarter earnings earlier this week on signs of recovery in the smartphone market.

Skyworks forecast first-quarter revenue to be between $1.18 billion and $1.23 billion, compared with analysts' average estimates of $1.29 billion, according to LSEG data.

On an adjusted basis, Skyworks expects first-quarter profit per share of $1.95, below Street estimates of $2.30.

Skyworks posted quarterly revenue of $1.22 billion, in line with analysts' expectations, according to LSEG data.

(Reporting by Akshita Toshniwal; Editing by Krishna Chandra Eluri)