The 10-second takeaway
For the quarter ended June 29 (Q3), Skyworks Solutions beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins shrank across the board.
Skyworks Solutions booked revenue of $389 million. The 18 analysts polled by S&P Capital IQ predicted sales of $383.0 million on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $356.1 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 $0.45. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. GAAP EPS of $0.26 for Q3 were 3.7% lower than the prior-year quarter's $0.27 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 42.5%, 140 basis points worse than the prior-year quarter. Operating margin was 16.2%, 450 basis points worse than the prior-year quarter. Net margin was 12.7%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $417.4 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $1.56 billion. The average EPS estimate is $1.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 643 members rating the stock outperform and 33 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Skyworks Solutions a green thumbs-up, and 11 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 $31.59.
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.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the 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 don't 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.