Skyworks Solutions Inc. (SWKS) - Get Skyworks Solutions, Inc. Report , a supplier to Apple Inc. (AAPL) - Get Apple Inc. Report , lowered its fiscal first-quarter revenue and profit guidance, citing a weakening smartphone market.
Skyworks, which makes high-performance analog semiconductors, said it now expects revenue of about $970 million, compared a prior guidance between $1 billion and $1.02 billion, and earnings per share in the range of $1.81 to $1.84, compared to prior guidance of $1.91, the company said in a press release.
"First fiscal-quarter results were impacted by unit weakness across our largest smartphone customers," said Liam Griffin, Skyworks president and CEO, in a statement.
Griffin said despite near-term challenges growth was in line with its prior outlook and cash flow remains strong.
Skyworks will hold an earnings conference call on Feb. 5 at 5 p.m. ET.
Apple announced a surprise cut in revenue and earnings guidance for the current quarter, sending shares plummeting nearly 10% last week. Apple blamed a slowing Chinese market for the miss.
The news came after several Apple suppliers already had cut their own revenue guidance last year. Lumentum Holdings Inc. (LITE) - Get Lumentum Holdings, Inc. Report , which supplies 3D chips for Apple iPhone's facial recognition system, downgraded its revenue and earnings forecast in November, citing a reduction in shipments requests from an unnamed customer.
Goldman Sachs Group Inc. cut its estimate for iPhone sales and group sales for the tech giant's 2019 fiscal year in November. "We are concerned that end demand for new iPhone models is deteriorating," Goldman analysts said.
Skyworks shares closed up 3.83% to $67.69 in trading.