Qorvo forecasts quarterly results below estimates on weak flagship smartphone market

(Reuters) - Wireless connectivity chipmaker Qorvo forecast first-quarter revenue and profit below Wall Street estimates on Wednesday as it expects weak demand from flagship smartphone market, sending shares down more than 11% in aftermarket trading.

Slowing sales of Apple's most popular product, iPhone, has hit suppliers such as Qorvo, as it accounted for about 37% of the chipmaker's total revenue in fiscal 2023, even when the global smartphone market is recovering.

"As we begin fiscal 2025, flagship smartphone ramps and large defense programs are down seasonally, and we expect product mix to trend toward mass market 5G products and associated higher-cost inventories in the June quarter," CFO Grant Brown said in a statement.

An uncertain economy has also forced customers to cut discretionary spending, with Qorvo facing stiff competition from other bigger rivals such as Broadcom and Qualcomm.

Rival Skyworks Solutions also forecast third-quarter revenue below estimates on Tuesday, citing demand concerns as clients struggle to offload excess inventory.

The Greensboro, North Carolina-based company expects first-quarter revenue to be about $850 million, plus or minus $25 million, compared with analysts' average estimate of $917.7 million, according to LSEG data.

Qorvo expects adjusted profit to be between 60 cents and 80 cents per share for the quarter ending June, compared with estimates of $1.27 per share.

Revenue for the fourth-quarter ended March 30 was $941 million, while adjusted profit came in at $1.39 per share, beating analysts' estimates for revenue of $926.3 million and adjusted profit of $1.21 per share.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan Barona)