Skyworks and RF Micro Down on Weak Phone Demand

Following up on a call yesterday morning cutting expectations for Motorola (MOT), Merrill Lynch’s Mark Heller yesterday afternoon trimmed his estimates on cell-phone component provider Skyworks Solutions (SWKS).

For the March 2007 fiscal year, he cut his estimates to $785 million in revenue and EPS of 52 cents, down from $800 million and 56 cents. For fiscal 2008, his estimates drop to $899 million and 69 cents, from $935 million and 81 cents.

Heller also repeated his Neutral rating on both Skyworks and RF Micro Devices (RFMD). Wrote Heller: “We remain cautious on the sector given soft handset demand and integration threats.”

Yesterday, Skyworks shares fell 6 cents to $6.52; RF Micro fell 7 cents to $7.57.

SWKS vs. RFMD 1-yr chart