Skyworks Solutions Beats on Both Top and Bottom Lines

Skyworks Solutions (Nasdaq: SWKS  ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q2), Skyworks Solutions beat slightly on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.

Gross margins shrank, operating margins grew, net margins grew.

Revenue details
Skyworks Solutions reported revenue of $425.2 million. The 18 analysts polled by S&P Capital IQ anticipated sales of $420.4 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $364.7 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 $0.48. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.47 per share. Non-GAAP EPS of $0.48 for Q2 were 14% higher than the prior-year quarter's $0.42 per share. GAAP EPS of $0.32 for Q2 were 78% higher than the prior-year quarter's $0.18 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 41.6%, 20 basis points worse than the prior-year quarter. Operating margin was 17.3%, 310 basis points better than the prior-year quarter. Net margin was 14.5%, 520 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $444.3 million. On the bottom line, the average EPS estimate is $0.53.

Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $2.15.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 713 members out of 749 rating the stock outperform, and 36 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 give Skyworks Solutions a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skyworks Solutions is outperform, with an average price target of $29.15.

Is Skyworks Solutions the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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 position in any of the stocks mentioned. 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.


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

DocumentId: 2390814, ~/Articles/ArticleHandler.aspx, 4/17/2014 8:41:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement