Analysts Lower Skyworks Solutions Forecasts Following Weak Revenue Predictions

Multiple major finance companies cut targets on Skyworks after weak revenue forecast, the company's shares drop as prediction for Q1 revenue falls below estimates due to demand issues and increasing competition in the chip industry.

Skyworks Solutions, a key Apple supplier, forecasted its first-quarter revenue below estimates due to ongoing demand concerns and increasing market competition, notably from Chinese-based chip manufacturers.
Despite exceeding earnings expectations for Q4, with an earnings per share of $2.20 and revenue of $1.219 billion, the company's shares fell due to its lower projected revenue for the upcoming fiscal year.
Major financial firms, including Keybanc, Morgan Stanley, and Susquehanna, have lowered their price targets on Skyworks following the announcement, contributing to an overall decline in the company's shares.
While Skyworks expects to see momentum in its mobile business, it anticipates ongoing weakness in other sectors due to excess inventory and macroeconomic headwinds.
Even as rivals Qorvo and Qualcomm forecast optimistic current-quarter earnings, partly due to recovery signs in the smartphone market, Skyworks continues to grapple with industry challenges, including competitive forces from Huawei's recent Mate 60 phone launch.