Skyworks Slides 9% as December Guidance Misses on Android Weakness
SWKS sits 52% above its 52-week low of $51.93 on light trading volume (0.3× avg).
Summary
Skyworks guided the December quarter to $1.8B-$1.9B in revenue and $1.25 in adjusted EPS, both well short of the $2B and $1.62 consensus. The miss is concentrated in Qorvo's Android smartphone business, where revenue is expected to fall more than 20% sequentially as rising memory prices squeeze low-end handset makers and force production cuts. The stock dropped 9.1% to $77.61. This is the first combined quarter since the Qorvo deal closed last month, and it lands right after the November 3 8-K that first disclosed the $1.80B-$1.90B range — the market is now pricing the consensus gap and the Android problem, not just the range. The offsetting positives are real but slower: data center revenue up roughly 90%, non-smartphone markets above 40% of combined revenue, and about $150M of expected fiscal 2027 opex savings that mostly arrive in the second half. Stifel says the strategic rationale holds but sees no near-term earnings recovery. Watch the fiscal 2027 second half for the cost savings to show up in margins.
At the time of this announcement, SWKS was trading at $78.87 on NASDAQ in the Technology sector, with a market capitalization of approximately $18.5B. The 52-week trading range was $51.93 to $92.80. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.