The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Skyworks Solutions beat slightly on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and earnings per share dropped.
Margins dropped across the board.
Skyworks Solutions reported revenue of $394 million. The 17 analysts polled by S&P Capital IQ hoped for revenue of $390 million. Sales were 17% higher than the prior-year quarter's $335 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.51. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.50 per share on the same basis. GAAP EPS of $0.30 for Q1 were 6.3% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 43.6%, 70 basis points worse than the prior-year quarter. Operating margin was 19.2%, 390 basis points worse than the prior-year quarter. Net margin was 14.5%, 370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $349 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $1.5 billion. The average EPS estimate is $1.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 625 members out of 660 rating the stock outperform, and 35 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Skyworks Solutions a green thumbs-up, and seven 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 $27.63.
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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. 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.