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Investing.com -- Shares of Qorvo Inc tumbled on Wednesday after the radio-frequency chipmaker issued current quarter guidance that missed expectations, saying the outlook reflected a "seasonal decline" at its largest customer, iPhone manufacturer Apple.
The stock fell about 6% by 09:38 ET following the market open.
The company, which is in the process of being acquired by larger rival Skyworks Solutions Inc, designs radio-frequency components such as filters and switches that are used in smartphones. Its products are also used in everything from cars to power devices, and in the defense and aerospace industries.
Qorvo reported fiscal third-quarter per-share earnings of $2.17, beating analysts’ estimate by 31 cents. Revenue came in at $993 million, versus Wall Street projections of $988.69 million.
For the current quarter, the group guided for a profit of $1.05-$1.35 per share on revenue of $775.00 million-$825.00 million. Analysts were expecting earnings of $1.37 per share on revenue of $903.80 million.
"Our March quarterly outlook reflects the seasonal decline at our largest customer," Qorvo CEO Bob Bruggeworth said in a statement, referring to Apple, which accounts for nearly half of the company’s revenue. Bruggeworth also flagged the impact of "the ongoing strategic resizing of our Android business, and continued strength in high performance analog business, which focuses on providing radio frequency solutions.
Qorvo and Skyworks announced their tie-up plans in October 2025, agreeing to merge in a $22 billion cash-and-stock deal. The transaction is expected to close early next year.
Writing in a note, analysts at Morgan Stanley said "[p]art of the rationale for the deal is that it would help stabilize content in between cycles," but warned that this "could be challenging if both sompanies are struggling to hold share against competitors."
"That being said, enhanced scale and pooled R&D capabilities should help strengthen their competitiveness and increase their leverage with Apple in future cycles," the analysts argued.
Scott Kanowsky contributed reporting.