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Skyworks Solutions Beats Analyst Estimates on EPS

Skyworks Solutions (Nasdaq: SWKS  ) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 28 (Q4), Skyworks Solutions met expectations on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Skyworks Solutions recorded revenue of $421.1 million. The 16 analysts polled by S&P Capital IQ predicted net sales of $420.5 million on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $402.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.53. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.32 for Q4 were 5.9% lower than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.2%, 120 basis points worse than the prior-year quarter. Operating margin was 17.8%, 170 basis points worse than the prior-year quarter. Net margin was 14.6%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $450.5 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 663 members out of 698 rating the stock outperform, and 35 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Skyworks Solutions a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skyworks Solutions is buy, with an average price target of $32.47.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 02, 2012, at 2:22 PM, dapperone wrote:

    Some websites, such as Schwab, are mixing up SWKS non-GAAP earnings with GAAP earnings in reporting the results for Q4. Schwab states that non-GAAP earnings for Q4 were $0.32 (which were actually the GAAP earnings) instead of the correct figure of $0.53. I wonder how prevalent this mistake is on other sites, and whether this confusion is contributing to the shellacking that SWKS shares are experiencing today. I expected the stock to be lower today, because Q1 guidance is lower than what analysts had predicted, but it makes no sense for the stock to be down by 14% based upon the Q4 report.

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10/24/2016 4:00 PM
SWKS $78.49 Up +1.02 +1.32%
Skyworks Solutions CAPS Rating: ****