The 10-second takeaway
For the quarter ended Sep. 28 (Q4), Skyworks Solutions met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.
Margins dropped across the board.
Skyworks Solutions recorded revenue of $421.1 million. The 16 analysts polled by S&P Capital IQ predicted net sales of $420.5 million on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $402.3 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 $0.53. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.32 for Q4 were 5.9% lower than the prior-year quarter's $0.34 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 42.2%, 120 basis points worse than the prior-year quarter. Operating margin was 17.8%, 170 basis points worse than the prior-year quarter. Net margin was 14.6%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $450.5 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $2.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 663 members out of 698 rating the stock outperform, and 35 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 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 $32.47.
Is Skyworks Solutions the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar 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 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. 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.
More from The Motley Fool
Better Buy: Infinera vs. Skyworks
Both companies stand to benefit from increased data usage and the growth of the Internet of Things. But which is the better investment?
These Stocks Can Win Big With Apple in 2018
Stronger iPhone production and content gains could give these two Apple suppliers a massive boost.
Why Skyworks Solutions, Inc. Could Be a Gold Mine for Income Investors
Don't discount this semiconductor maker's stock just because of its below-average dividend yield.