What happened

Shares of Skyworks Solutions (SWKS 0.31%) fell by as much as 5% in morning trading but have mostly recovered from those losses after the company reported fiscal third-quarter earnings last night. The release topped expectations in numerous ways, so it's unclear why investors were initially disappointed. As of 12:20 p.m. EDT, stock was down just 1%.

So what

Revenue in the fiscal third quarter was $736.8 million, ahead of the consensus estimate of $691.2 million. That led to adjusted earnings per share of $1.25, topping the $1.14 per share in adjusted profits that Wall Street was expecting. The company also boosted its quarterly dividend by 14% to $0.50 per share.

Six Phone 11 units in different colors getting splashed with water

Apple is Skyworks' largest customer. Image source: Apple.

"At the cusp of a multi-year upgrade cycle, we are capitalizing on early market momentum and accelerating widespread 5G adoption. Our efforts are underpinned by years of investment in next-generation technologies, uniquely positioning Skyworks to deliver long-term profitable growth," CEO Liam Griffin said in a statement.

Now what

The prominent Apple supplier also issued a strong outlook for the fiscal fourth quarter. Revenue is forecast in the range of $830 million to $850 million, which is expected to translate into adjusted earnings per share of $1.51. That outlook is ahead of the $788.6 million in sales and $1.43 per share in adjusted profits that analysts are currently modeling for.

Apple is Skyworks' biggest customer, accounting for 51% of revenue last fiscal year. The Cupertino tech giant's flagship iPhones are reportedly being delayed until late October due to supply chain holdups related to the COVID-19 pandemic. Skyworks will enjoy robust sales as Apple begins producing new handsets ahead of the launch.

The stock received a slew of price target upgrades following the report, with most analysts reiterating buy (or equivalent) ratings.