The 10-second takeaway
For the quarter ended June 28 (Q3), Skyworks Solutions met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Skyworks Solutions notched revenue of $436.1 million. The 18 analysts polled by S&P Capital IQ expected to see sales of $436.0 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $389.0 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 $0.54. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. Non-GAAP EPS of $0.54 for Q3 were 20% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.34 for Q3 were 31% higher 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 43.2%, 70 basis points better than the prior-year quarter. Operating margin was 19.3%, 440 basis points better than the prior-year quarter. Net margin was 15.1%, 240 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $471.7 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $2.17.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 716 members out of 752 rating the stock outperform, and 36 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 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 $30.18.
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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 position in any of the stocks mentioned. 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.