Chipmaker Skyworks Slides on Weak Guidance

Shares of Skyworks Solutions Inc. (SWKS)  were falling hard Friday, Nov. 9, after the semiconductor company reported weak guidance for its fiscal first quarter. 

The stock fell more than 7% to $77 a share in midday trading Friday. 

Better-than-expected fiscal fourth-quarter earnings and satisfactory sales weren't enough to satisfy investors. Earnings were $1.94 a share on an adjusted basis, beating estimates of $1.92. Analysts expected revenue of $1 billion, exactly what Skyworks delivered. 

The company said it expects first-quarter revenue of between $1 billion and $1.02 billion, and earnings of $1.91 a share on a non-GAAP. Analysts had been calling for revenue of $1.07 billion and earnings of $2.08.

"Despite the near-term industry weakness, we intend to deliver our 10th consecutive fiscal year of revenue and non-GAAP earnings growth," said Skyworks Senior Vice President and Chief Financial Officer Kris Sennesael.

Indeed, the semiconductor industry will have to cope with weakness ahead. Oversupply recently hit the industry, sending chip stocks down, and a weak demand outlook ahead wasn't helping either. 

Skyworks shares have yet to gain any real traction this year, as a pop to $115 a share in March was short-lived. The stock is down about 22% this year. 

More from Markets

Nvidia Shares Tank as Analysts Cut Price Targets

Nvidia Shares Tank as Analysts Cut Price Targets

Oil, Energy Stocks, Recover After Volatile Week

Oil, Energy Stocks, Recover After Volatile Week

Flashback Friday: Nvidia Is the Ultimate Chip and Dip

Flashback Friday: Nvidia Is the Ultimate Chip and Dip

Pfizer Plans Price Hikes for 41 Drugs Next Year

Pfizer Plans Price Hikes for 41 Drugs Next Year

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls