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Investing.com -- Shares of Skyworks Solutions (NASDAQ:SWKS) climbed 3.5% while Cirrus Logic (NASDAQ:CRUS) saw a 2% increase following a robust earnings report from fellow Apple (NASDAQ:AAPL) supplier Qorvo (NASDAQ: NASDAQ:QRVO). Qorvo’s third-quarter financial performance exceeded analyst expectations, prompting a positive market response for companies within the same supply chain.
Qorvo, known for its connectivity and power solutions, announced its fiscal 2025 third-quarter results, which ended on December 28, 2024. The company reported earnings per share (EPS) of $1.61, surpassing the analyst estimate of $1.21 by $0.40. Revenue reached $916.3 million, beating the consensus estimate of $902.6 million. These figures represent a notable improvement over the same quarter last year, indicating a strong trajectory for the company.
The positive results have also led Qorvo to project an optimistic outlook for the fourth quarter of 2025, with expected EPS ranging from $0.90 to $1.10, against the consensus of $0.86. Revenue forecasts stand at approximately $850 million, in line with consensus estimates.
Qorvo’s success has been partly attributed to its strategic initiatives aimed at expanding margins, generating robust free cash flow, and enhancing shareholder value. Bob Bruggeworth, president and CEO of Qorvo, highlighted the company’s focused support for its largest customer, which accounted for about half of the quarter’s sales. The firm’s narrowing focus on the high-value tiers of the Android 5G product portfolio and record Defense & Aerospace revenue have also been key factors in its strong performance.
Chief Financial Officer Grant Brown expressed confidence in the company’s proactive measures taken during the quarter to optimize the Android business support and divest its silicon carbide business. These steps are anticipated to contribute to gross margin improvements in the coming fiscal years.
The market’s reaction to Qorvo’s earnings report reflects the interconnected nature of the tech supply chain, with positive results from one key player often leading to bullish sentiment for related companies. Skyworks Solutions and Cirrus Logic, as part of this ecosystem, are benefiting from the strong performance of their industry peer.
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