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Apple-supplier IQE trims full-year earnings outlook

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Apple-supplier IQE trims full-year earnings outlook
FILE PHOTO: Thailand's first flagship Apple store is seen at Iconsiam shopping mall in Bangkok, Thailand November 9, 2018. REUTERS/Soe Zeya Tun   -   Copyright  SOE ZEYA TUN(Reuters)
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(Reuters) – Apple supplier IQE <IQE.L> on Tuesday said it expects full-year core earnings to be about 16.4 percent lower from a year ago after a major chipmaker in the 3D sensing technology supply chain reported a reduction in orders.

IQE, which had warned on full-year results on Monday, said it now expects to earn about 31 million pounds ($39.92 million), after one of the chipmaker’s largest customers said it would “materially reduce” shipments for the current quarter.

U.S.-based Lumentum Holdings Inc <LITE.O>, the main supplier of the Face ID technology used in the latest iPhones, cut $70 million off its revenue forecast on Monday.

IQE also expects to deliver revenues of about 160 million pounds ($206.02 million) for the year, up from 154.6 million pounds ($199.06 million) last year.

Shares of IQE, which closed down nearly 29 percent on Monday, are currently up about 4 percent.

“We remain convinced we are still at the foothills of the opportunity, and given the share price reaction yesterday, remain positive on IQE’s medium- to longer-term value upside,” Peel Hunt said in a report on Tuesday.

Shares of many Asian suppliers and assemblers fell on Tuesday, leading some market watchers to call the peak for iPhones in several key markets.

($1 = 0.7766 pounds)

(Reporting by Tanishaa Nadkar and Pushkala Aripaka in Bengaluru; Editing by Sunil Nair)

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