Skyworks Solutions Shares Up After Positive Guidance, Outlook
- Updated: October 14, 2014
Skyworks Solutions, Inc., (NASDAQ: SWKS) saw gains in early morning trading after its pre-announcement that fiscal fourth quarter profits will be greater than anticipated and previous revenue guidance, with stock jumping 8.72% from yesterday’s close of $45.32 to $49.27 per share. Current share value pushes Skyworks’ closer to the top 52-week range between $23.27 and $59.25 per share.
Skyworks develops semiconductors used in mobile phone devices and thanks to multi-year trends in the business, results were boosted. This is also creating the opportunity for Skyworks to outperform the broader semiconductor industry for the December quarter and foreseeable future, according to David J. Aldrich, Chief Executive.
As part of the announcement, fiscal fourth quarter earnings will grow by 69% to $1.08 per diluted share on revenue of $718 million, up from the earlier forecast of $1 per share on $680 million revenue. Guidance for revenue represents a year-over-year increase of 51%, as well as sequential growth of 22%.
Revenue growth for Skyworks came in above the industry average of 10.3% and when full results are posted in November, analysts anticipate adjusted earnings of $1.01 per share on revenue of $679.45 million.
Overall, Skyworks has no real debt, bringing the debt-to-equity ratio to zero, considered a relatively favorable sign by analysts. This coupled with a quick ratio of 4.88 the company has demonstrated its ability to cover cash needs short-term.
Also noted by analysts was a strong earnings growth of 70.58% and stock that surged over the past year by 111.45%, which outperformed the S&P 500 Index rise during the same period. Although the company has experienced an impressive gain in the past year, analysts believe Skyworks stock will continue to increase in value.
Skyworks Solutions, Inc. was founded in 1962 and together with subsidiaries, the company provides analog semiconductors throughout the world. The company’s product portfolio includes battery chargers, amplifiers, DC/DC converters, detectors, demodulators, circulators, attenuators, directional couples, front-end modules, diodes, LED drivers, hybrids, and much more.
In addition, Skyworks offers transceivers and MIS silicon chip capacitors, as well as products that support a broad range of applications for military, medicine, energy management, cellular infrastructure, automotive, smartphone, and wireless networking.
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