Skyworks Solutions Lowers Outlook Due to Coronavirus

Skyworks says demand for its products has been hurt by interruptions in global supply chains.
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Skyworks Solutions  (SWKS) - Get Report was rising in  trading Wednesday despite the semiconductor company lowering its second-quarter expectations due to the fallout from the coronavirus epidemic.

The company now expects second-quarter revenue of between $760 million and $770 million compared to its prior guidance between $800 million and $820 million. Non-GAAP earnings are expected to be $1.34 a share at the midpoint compared to a previous outlook of $1.46.

Analysts were expecting the company to report earnings of $1.44 a share on revenue of $797.8 million.

"Although Covid-19 has caused no significant disruption within Skyworks’ manufacturing operations to date, the current demand environment for our products has been negatively impacted by interruptions in global supply chains," said CEO Liam K. Griffin.

"Despite this, we remain upbeat about our design win momentum and our ability to deliver strong profitability and cash flow. As we navigate these challenges, we continue to focus on the health and safety of all our employees, customers and partners worldwide,” Griffin added.

Skyworks shares were rising more than 2% Wednesday to $101.75.

First discovered in Wuhan, China, Covid-19, better known as the coronavirus, has become worldwide news as the virus spreads.

More than 3,000 people have died from the coronavirus, the overwhelming majority of which have been in mainland China. The World Health Organization and the Centers for Disease Control and Prevention each have cautioned countries worldwide to prepare for a potential pandemic after outbreaks in countries like Iran and Italy. The outbreak also was having a major impact on world economies and markets.

Skyworks is a supplier of Apple  (AAPL) - Get Report