Breaking: SWKS Pops After Beating Q3 Estimates

I’ve had July 17 circled on my calendar in anticipation of this moment. Skyworks Solutions (SWKS) just reported stunning sales and earnings growth for the fiscal third quarter. Skyworks is a rising star in the analog semiconductors industry and it is benefiting from the global adoption of wireless technology.

Compared with Q3 2013, operating income soared 60% to $179.1 million. Adjusted earnings were $0.83 per share, topping the $0.80 consensus EPS estimate by 4%. Over the same period, revenue jumped 35% to $587 million. This surpassed the company’s and analyst expectations, which called for $570 million in revenue.

Even better, the company expects robust growth in the coming quarter. For Q4 2014 Skyworks forecasts 43% sales growth and 56% adjusted earnings growth. This is substantially higher than the Street view, which had called for 27.5% top-line growth and 35.9% bottom-line growth. So we’ll likely see a round of earnings revisions as analysts process this new information.

Skyworks’ Board of Directors also declared a dividend of $0.11 per share. Shareholders of record on August 7 will be paid on August 7. SWKS currently pays a 0.9% dividend yield, which is on the higher end of the industry average. All-in-all, this was a strong earnings report, and I consider SWKS an A-rated Strong Buy.


Louis Navellier

Louis Navellier

P.S. If you’d like more information on SWKS, including my current price limit for the stock, you can access it through a risk-free trial of Blue Chip Growth.

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