Skyworks Shares Fall 12% on Weak Post-Merger Outlook

Skyworks Solutions reported fiscal fourth-quarter revenue of about $1.05 billion and adjusted earnings of $1.28 per share, narrowly topping analyst estimates, while GAAP earnings fell sharply from a year earlier. The results cover Skyworks before its combination with Qorvo, which closed after the quarter; the company’s first outlook as a combined business called for fiscal first-quarter revenue of $1.8 billion to $1.9 billion and adjusted EPS of $1.25, both below Wall Street expectations. Skyworks expects smartphone revenue to fall by a low-teens percentage sequentially, partly reflecting seasonality and Android-market softness, while diversified-markets revenue is projected to rise modestly. The disappointing forecast sent shares down about 12% to 13% in extended trading. The company is targeting at least $500 million in annual cost savings from the merger, including about $150 million in operating-expense synergies during fiscal 2027.