Company Update (NASDAQ:SWKS): Skyworks Solutions Inc Reports Fiscal 2016 First Quarter Results

Skyworks Solutions Inc (NASDAQ:SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today reported first fiscal quarter results for the period ending January 1, 2016. Revenue for the first fiscal quarter was $926.8 million, up 15 percent year-over-year and 5 percent sequentially, exceeding the First Call consensus estimate of $915.7 million.

On a non-GAAP basis, operating income for the first fiscal quarter of 2016 was $366.6 million, up 30 percent from $282.0 million in the first fiscal quarter of 2015. Non-GAAP diluted earnings per share for the first fiscal quarter was $1.60, $0.02 better than the First Call consensus of $1.58, and up 27 percent from the first fiscal quarter of 2015. On a GAAP basis, operating income for the first fiscal quarter of 2016 was $330.5 million and diluted earnings per share was $1.82.

“Skyworks delivered solid financial results in the first fiscal quarter of 2016 driven by our diversification across customers, markets and applications,” said David J. Aldrich, chairman and chief executive officer of Skyworks. “Leveraging our proprietary and highly integrated system solutions, we continue to increase our addressable content, gain market share and capitalize on global demand for ubiquitous network access. At a higher level, we are executing on our vision of connecting everyone and everything, all the time, and are uniquely positioned to sustainably outperform the broader semiconductor industry.”

Q1 Business Highlights

  • Commenced volume shipments of telematics solutions at Volkswagen
  • Secured first mass production of vehicle-to-vehicle communications sockets at GM
  • Supported Google Chromecast and Roku set-top boxes for streaming applications
  • Won multiple sockets in flagship smartphone platforms at Samsung and other OEMs
  • Ramped microcell radio subsystems at leading infrastructure OEM
  • Launched IP security camera solutions at Nest
  • Powered Huawei’s Mate 8 flagship LTE platform
  • Enabled the DJI Phantom 3 drone with a suite of 14 semiconductors
  • Leveraged ZigBee® and Bluetooth® capabilities for temperature control and garage door applications in the connected home
  • Captured key smart fitness watch design wins at Fitbit

Second Quarter 2016 Outlook

“Despite the current market environment, we expect to deliver earnings growth in the March quarter driven by strong gross margin performance and a disciplined approach with expenses,” said Donald W. Palette, executive vice president and chief financial officer of Skyworks. “Specifically, for the second fiscal quarter of 2016, we anticipate revenue of $775 million and non-GAAP diluted earnings per share of $1.24.”

Dividend Payment

Skyworks’ Board of Directors declared a cash dividend of $0.26 per share of the Company’s common stock, payable on March 3, 2016 to stockholders of record at the close of business on February 11, 2016.

For further information regarding use of non-GAAP measures in this press release, please refer to the Discussion Regarding the Use of Non-GAAP Financial Measures set forth below. (Original Source)

Shares of Skyworks Solutions are up 2.5% to $66.45 in after-hours trading. SWKS has a 1-year high of $112.88 and a 1-year low of $58.50. The stock’s 50-day moving average is $72.48 and its 200-day moving average is $82.38.

On the ratings front, Skyworks has been the subject of a number of recent research reports. In a report released yesterday, Citigroup analyst Atif Malik assigned a Buy rating on SWKS, with a price target of $78, which represents a potential upside of 24.3% from where the stock is currently trading. Separately, on January 26, Oppenheimer’s Rick Schafer reiterated a Buy rating on the stock and has a price target of $120.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Atif Malik and Rick Schafer have a total average return of 7.3% and 20.0% respectively. Malik has a success rate of 48.1% and is ranked #672 out of 3596 analysts, while Schafer has a success rate of 64.4% and is ranked #6.

Overall, 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $97.80 which is 55.8% above where the stock opened today.

Skyworks Solutions Inc, together with its consolidated subsidiaries is an innovator of high reliability analog and mixed signal semiconductors.


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