Seeking Alpha

Skyworks soars on results/guidance, lifts fellow mobile suppliers

  • "We believe Skyworks’ (SWKS +13.5%) diverse analog portfolio is enabling content share gains in its handset customer base," writes Canaccord after taking in the RF component giant's FQ3 beat and very strong FQ4 guidance.
  • Canaccord thinks the FQ4 outlook is due to a mixture of strong iPhone 6 content share, growing sales of higher dollar-content integrated solutions to Chinese/emerging markets OEMs (gaining Android share), and "growing traction" for the company's non-phone analog IC business.
  • 802.11ac Wi-Fi, mobile infrastructure, and embedded products (the proverbial "Internet of Things") are some of the non-mobile RF markets Canaccord sees Skyworks growing its sales to. Needham, for its part, also sees the smart grid, automotive, and medical markets providing a boost.
  • On the CC (transcript), CEO David Aldrich declared broader mobile RF demand is benefiting from the need to support a larger number of spectrum bands - Avago (AVGO +4.3%) also benefits from this - as well as growing system complexity (driving a shift towards integrated solutions) and OEM efforts to improve signal performance.
  • RF component peers Avago, RF Micro (RFMD +6.7%), TriQuint (TQNT +6.8%), and Resonant (RESN +7%) are outperforming amid a tech rally, as are several other mobile suppliers. INVN +3.9%. HIMX +2.9%. OLED +5.3%. CRUS +2.9%.
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Comments (1)
  • Esekla
    , contributor
    Comments (3740) | Send Message
     
    I think the lines between the dots presented here should be dashes, at best.

     

    As I've commented in Valuing Universal Display Corp Earnings, the roller coaster ride is completely attributable to a recent, shall we say, "incompletely informed" article in combination with broader market movement. Today is just a bounce back as readers recognized the buying opportunity that I pointed out, both in that article and my own.

     

    Commenters in my latest INVN article have been chalking the price action in that stock up to other factors, like short covering ahead of earnings at the end of the month, which contains significant risks for both sides of the trade.
    18 Jul 2014, 03:04 PM Reply Like
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