Canaccord Reiterates Buy on Skyworks Solutions Inc Following Strong Earnings Guidance

Skyworks Solutions Inc (NASDAQ:SWKS) shares jumped today, after the Apple chip supplier reported better-than-expected results for its fourth quarter of fiscal 2015, and issued guidance ahead of the Street’s consensus.

Canaccord analyst Michael Walkley took an in-depth look at the earnings and fundamentals of Skyworks Solutions and came out with an optimistic view.

Walkley wrote, “Despite some weak trends in September quarter global smartphone sales, we believe Skyworks’ strong results and guidance were driven by RF content share in the iPhone 6 and Samsung’s Galaxy S6 smartphones combined with our belief Skyworks gained at least 15% additional content share in the new iPhone 6S smartphones. We also believe growing sales of higher dollar content integrated solutions to Chinese smartphone OEMs contributed to the strong results and guidance. Also, growing traction in its non-handset broad markets business that grew 20% Y/Y in F2015 helped drive the strong results and margins.”

Furthermore, “We believe Skyworks’ broad portfolio of custom integrated solutions should enable dollar content share growth in leading premium tier smartphones from Apple and Samsung and also enable Skyworks to grow content share in the fast growing Chinese LTE smartphone market. We also believe Skyworks’ diverse analog portfolio positions its broad market division for 20% plus annual growth driven by content share in markets such as 802.11ac, wireless infrastructure, and the IoT market.”

Walkley reiterated a Buy rating on Skyworks Solutions shares, with a price target of $132, which implies an upside of 54% from current levels.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 17.3% and a 63.5% success rate. Walkley has a 50% average return when recommending SWKS, and is ranked #11 out of 3827 analysts.

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