Apple Supplier Qorvo Cuts Q3 Outlook

(RTTNews) - Qorvo Inc. (QRVO), a supplier for Apple Inc. (AAPL), Tuesday cut its third-quarter forecast for profit and revenue, becoming the latest supplier for the iPhone maker to have lowered its outlook due to lower demand from a major customer.

Adjusted earnings for the third quarter is now expected to be $1.70 per share at the midpoint of guidance, compared to the previous forecast of $1.95.

Qorvo, a provider of innovative RF chips, said it now expects third-quarter revenues of $800 million and $840 million, down from its previous forecast of $880 million to $900 million.

Analysts polled by Thomson Reuters currently expect earnings of $1.95 per share and revenues of $892.72 million.

The company said the change in outlook was due to recent demand changes for flagship smartphones. Qorvo's forecast of demand from China-based handset manufacturers remains measured and largely unchanged.

Apple had said its holiday season quarter sales would miss Wall Street expectations, largely due to weakness in emerging markets and foreign exchange costs.

Lumentum, one of the suppliers Apple uses for its facial recognition and augmented reality technology, Monday said it received a request from one of its largest suppliers to reduce its shipments. Although, the company did not reveal the name of its "largest supplier", the news prompted concerns that the latest iPhones may not be in huge demand into the holiday season.

Japan Display Inc., which supplies screens for the iPhone XR, cut earnings estimates for its fiscal year ending in March. It said orders for its latest LCD panels would be much lower than its initial expectations for the three months ending in March.