Shares of Skyworks Solutions (SWKS 2.79%), which makes semiconductors for smartphones, soared in early trading Friday, rising 11.4% through 10:30 a.m. EST because of a good old-fashioned earnings beat.
Expected to earn just $2.08 per share in pro forma profit on sales of less than $1.1 billion, Skyworks reported sales in excess of $1.5 billion in its fiscal first-quarter 2021 report released yesterday evening, and crushed on earnings as well, reaching $3.36 per share.
Profits as calculated according to generally accepted accounting principles (GAAP) didn't come in quite as strong as that pro forma number. Still, the company's GAAP profit of $3.05 per share more than doubled what Skyworks earned one year ago. And the company's revenue number set a new record, improving 69% year over year.
Free cash flow for the quarter was $366 million -- below reported net income of $509 million, but 27.5% better than the $287 million generated a year ago.
And the news gets better. Skyworks management noted that "demand for our proven solutions continues to accelerate across a growing set of customers and end markets." With a "multi-year wireless transition ... now under way," Skyworks predicts that in Q2 it will generate revenue ranging from $1.125 billion to $1.175 billion, and pro forma profits of about $2.34 per share, "representing revenue growth of 50% and non-GAAP diluted earnings-per-share growth of 75%."
Wall Street analysts, for the record, had been predicting only $915 million in sales in Q2, and only $1.70 per share in pro forma profit. Translation: After beating earnings in Q1, Skyworks Solutions looks set to do it again in Q2.