March 4, 2020 / 1:55 PM / a month ago

Apple supplier Skyworks cuts forecasts on supply chain hit

(Reuters) - Skyworks Solutions Inc (SWKS.O), which supplies radio chips to Apple Inc’s (AAPL.O) iPhones, cut its quarterly results forecasts on Wednesday, saying the coronavirus had disrupted distribution while stressing its largely Asia-based production facilities had been little affected.

Earlier in February, Apple warned that sales for the first three months of the year would fall short of estimates as the coronavirus outbreak affected both production and demand in China.

Apple accounted for 51% of Skyworks’ net revenue in 2019, according to a regulatory filing. Skyworks also derives nearly 20% of its annual revenue from China.

Skyworks’ cut its forecast for sales to between $760 million and $770 million, from a previous $800 million to $820 million. Analysts were expecting revenue of $790.1 million, according to IBES data from Refinitiv.

Excluding items, the company now expects earnings of $1.34 per share from $1.46 per share. Analysts, on average, were expecting profit of $1.42 per share.

Shares in the company rose around 2%, roughly in line with a broad early bounce on Wall Street.

Reporting by Supantha Mukherjee and Ayanti Bera in Bengaluru; Editing by Arun Koyyur and Patrick Graham

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