Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Skyworks Solutions falls despite 'better than feared' results

Published 08/08/2023, 13:54
© Reuters.
AAPL
-
SWKS
-

Skyworks Solutions (NASDAQ:SWKS) fell 2% in pre-open trading Tuesday despite third-quarter results which were described by analysts as "better than feared."

Revenue for the quarter fell 13% to $1.071 billion, in line with the consensus of $1.07 billion. Non-GAAP diluted EPS was $1.73, beating the consensus of $1.67.

"'Skyworks' resilient business model and disciplined execution enabled us to deliver record operating and free cash flow for the first three quarters of the fiscal year,” said CEO Liam K. Griffin. “Our targeted investments in next-generation technologies are generating solid momentum going into the second half of calendar year 2023.”

Looking toward the fourth quarter, the company sees non-GAAP EPS of $2.10 at the midpoint, versus the consensus of $2.11. They anticipate revenue of $1.19B-$1.24B, versus the consensus of $1.22B.

On the guidance, Susquehanna analysts noted that September is "all-important" as it best informs investors about upcoming iPhone content.

"While we knew this would be a lighter content year, we were worried about bigger declines. But September guidance (and December commentary) put us at ease, and close to flat content YOY," they commented.

The analysts reiterated a Positive rating and raised his price target to $130 from $125.

Several other analysts also raised their price target following the results. JPMorgan goes to $125 (from $105) while maintaining a Neutral rating, B. Riley goes to $102 (from $93) while maintaining a Neutral rating, and Morgan Stanley goes to $112 (from $104) while maintaining an Equalweight rating.

Meanwhile, Mizuho analysts, while still bullish on the stock, cut their price target to $122 (from $125) as inventory headwinds remain. The analysts' key takeaways on the quarter were: "1) SepQ stronger with iPhone launch but continued weakness in China/Android ecosystem, 2) 2H better with SepQ iPhone15 ramp (Apple (NASDAQ:AAPL) ~64% of JunQ rev), DecQ also up q/q, 3) cutting output with fab underutilization impacting GMs in Sep/DecQ, and 4) Broad Markets strength continuing in auto/industrials."

In addition to reporting earnings, Skyworks’ board of directors also raised the quarterly dividend by 10% to $0.68 per share.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.