The 10-second takeaway
For the quarter ended March 30 (Q2), Skyworks Solutions met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Skyworks Solutions reported revenue of $364.7 million. The 16 analysts polled by S&P Capital IQ expected a top line of $361.2 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $325.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share. GAAP EPS of $0.18 for Q2 were 31% lower than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.8%, 150 basis points worse than the prior-year quarter. Operating margin was 13.6%, 730 basis points worse than the prior-year quarter. Net margin was 9.3%, 610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $380.8 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $1.55 billion. The average EPS estimate is $1.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 645 members out of 678 rating the stock outperform, and 33 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 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 $30.22.
New mobile devices are changing the game, and potential profitability, at many semiconductor companies. Some will fail, some will tread water, and those in the right devices will shine. Where does Skyworks Solutions fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Skyworks Solutions to My Watchlist.