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What to Expect from Skyworks Solutions

By Seth Jayson – Updated Apr 7, 2017 at 12:06PM

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Checking expectations

Skyworks Solutions (Nasdaq: SWKS) is expected to report Q4 earnings on Nov. 1. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Skyworks Solutions's revenues will grow 4.5% and EPS will decrease -3.7%.

The average estimate for revenue is $420.5 million. On the bottom line, the average EPS estimate is $0.52.

Revenue details
Last quarter, Skyworks Solutions logged revenue of $389.0 million. 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 details
Last quarter, non-GAAP EPS came in at $0.45. 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.

Recent performance
For the preceding quarter, gross margin was 42.5%, 140 basis points worse than the prior-year quarter. Operating margin was 14.9%, 580 basis points worse than the prior-year quarter. Net margin was 12.7%, 180 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.57 billion. The average EPS estimate is $1.89.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 662 members out of 696 rating the stock outperform, and 34 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 give Skyworks Solutions a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skyworks Solutions is buy, with an average price target of $31.59.

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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. The Motley Fool has no positions in the stocks mentioned above. 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.

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