Stock Update (NASDAQ:SWKS): Skyworks Solutions Inc Exceeds Q4 FY15 Revenue and EPS Guidance

Skyworks Solutions Inc (NASDAQ:SWKS) an innovator of high performance analog semiconductors connecting people, places and things, today reported fourth fiscal quarter and year-end results for the period ending October 2, 2015. Revenue for the fourth fiscal quarter was $880.8 million, up 23 percent year-over-year and, as previously announced, exceeded the Company’s guidance of $875 million.

On a non-GAAP basis, operating income for the fourth fiscal quarter of 2015 was $335.2 million, up 42 percent from $235.7 million in the fourth fiscal quarter of 2014. Non-GAAP diluted earnings per share for the fourth fiscal quarter was $1.52, $0.01 better than guidance and up 36 percent from the$1.12 reported for the fourth fiscal quarter of 2014. On a GAAP basis, operating income for the fourth fiscal quarter of 2015 was $297.6 million and diluted earnings per share was $1.18.

For fiscal year 2015, revenue was $3.26 billion, up 42 percent from fiscal 2014, while non-GAAP diluted earnings per share was $5.27, up 63 percent year-over-year. GAAP diluted earnings per share for fiscal 2015 was $4.10.

“Skyworks is playing a pivotal role in enabling major technology advancements within mobile connectivity, streaming media services, and theInternet of Things,” said David J. Aldrich, chairman and chief executive officer of Skyworks. “We are successfully executing on our strategy of leveraging world-class systems design capabilities and integration leadership to deliver the industry’s most advanced analog connectivity systems. Entering fiscal 2016, we are well positioned to continue delivering growth and profitability in excess of the broader semiconductor market.”

Q4 Business Highlights

  • Captured Wi-Fi, Bluetooth and ZigBee® content in the Google OnHub Connected Home Gateway with a suite of 20 devices
  • Launched tuning and connectivity ICs in Huawei’s Nexus 6P smartphone platform
  • Extended momentum in the connected home with ZigBee® front-end modules in Samsung’s SmartThingsTM suite of products
  • Expanded presence in a leading small-cell BTS platform with $25 of content
  • Unveiled SkyOne® and diversity receive modules in ZTE’s Axon smartphone
  • Secured display backlight and power management functionality in LG infotainment centers for upcoming Hyundai models
  • Powered Arris DOCSIS 3.0 cable modem for Time Warner deployments
  • Supported Moto X smartphone with five devices including TrueFlash™ dual LED camera flash IC
  • Introduced ZigBee® solutions for Philips’ latest smart lighting hub

First Fiscal Quarter 2016 Outlook

“Fiscal 2015 was a record year for Skyworks across all metrics,” said Donald W. Palette, executive vice president and chief financial officer ofSkyworks. “We are capitalizing on favorable end market trends—leveraging our differentiated systems solutions portfolio to expand our addressable opportunity and enhance our financial returns. We continue to strategically position our business to take advantage of the tremendous growth opportunity we see ahead in our served markets. For the first fiscal quarter of 2016, we anticipate revenue between $925 million and $930 million, with non-GAAP gross margin in the range of 51 percent. We forecast non-GAAP diluted earnings per share of $1.60.”

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.

Dividend Payment

Skyworks’ Board of Directors declared a cash dividend of $0.26 per share of the Company’s common stock, payable on December 10, 2015 to stockholders of record at the close of business on November 19, 2015. (Original Source)

Shares of Skyworks Solutions are up 3.70% to $83.25 in after-hours trading. SWKS has a 1-year high of $112.88 and a 1-year low of $56.68. The stock’s 50-day moving average is $81.86 and its 200-day moving average is $93.10.

On the ratings front, Skyworks has been the subject of a number of recent research reports. In a report issued on November 2, B. Riley analyst Craig Ellis reiterated a Buy rating on SWKS, with a price target of $127, which represents a potential upside of 58.2% from where the stock is currently trading. Separately, on October 20, Drexel Hamilton’s Cody Acree initiated coverage with a Buy rating on the stock and has a price target of $110.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Craig Ellis and Cody Acree have a total average return of 15.1% and 16.9% respectively. Ellis has a success rate of 77.0% and is ranked #205 out of 3824 analysts, while Acree has a success rate of 50.9% and is ranked #316.

The street is mostly Bullish on SWKS stock. Out of 8 analysts who cover the stock, 7 suggest a Buy rating and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $117.25, which implies an upside of 46.1% from current levels.

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


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