Skyworks Solutions Ready To Heat Up
Fri, Jul. 22, 3:00 PM
Fri, Jul. 22, 11:13 AM
- Analysts are looking past a headline earnings beat for Skyworks Solutions (SWKS -9%), and instead focusing on whether an increase in inventory to $437.6M from $267.9M nine months earlier signals supply chain issues as it relates to Apple's upcoming iPhone release.
- Mike Burton at Brean Capital has been getting a lot of concerned calls over the inventory spike, and he believes a major Skyworks customer had demanded higher capacity. Michael Walkley at Canaccord believes inventory numbers will level out through the end of 2016 but also forecasts Y/Y sales to Apple will contribute to slower growth over the upcoming quarters. Maynard Um at Wells Fargo cites Skyworks' management attribution that work in progress and not old cycle inventory is resulting in the high number, which could be read as a positive sign for iPhone 7 production, though cautioning the quarter is far from conclusive.
- Alongside the results, Skyworks boosted the quarterly dividend by 7.7% and initiated a $400M stock repurchase program.
- Q4 revenue guidance of $831M ( up 10-11% Q/Q) midpoint and EPS of $1.43.
Thu, Jul. 21, 5:34 PM
Tue, Jul. 5, 10:18 AM
- Cirrus Logic (NASDAQ:CRUS) is off 7.4% and Skyworks Solutions (NASDAQ:SWKS) down 5.6% as Pacific Crest downgrades both to Sector Weight amid some disappointing iPhone supply chain forecasts.
- Qorvo (QRVO -5.5%) and InvenSense (INVN -5.1%) are down as well.
- Pac Crest has a fair value range of Cirrus Logic of $33-$36 (vs. its previous close of $38.04) and for $60-$67 on Skyworks (vs. previous close of $62.60).
- It also cut price targets on Analog Devices (ADI -1.7%) to $60 from $62 (7.7% upside); Broadcom (AVGO -2.5%) to $180 from $185 (19.7% upside) and Qualcomm (QCOM -1.3%) to $59 from $61 (12.8% upside).
- "Our lowered estimates reflect a much more disappointing second-half 2016 iPhone 7 ramp than what we had previously expected, as feedback from Asia indicates units are expected to be down 15% to 20% as compared to the iPhone 6s, as Apple appears to be taking a much more cautious view of the ramp," the analysts wrote.
Thu, Jun. 30, 3:14 PM
- Skyworks (SWKS +2.2%) adds to session gains in the past few minutes amid unconfirmed takeover rumors.
Thu, Jun. 9, 2:28 PM
- Believing the stock "deserves to trade at a discount or 11x P/E vs. last three year average of 12.5x," Citi's Atif Malik has downgraded Skyworks (SWKS -1.7%) to Sell, and cut his target by $4.50 to $65.
- Malik notes Skyworks has relatively high exposure to the iPhone 6S, whose sales have been pressured. He also cites a "lack of premium [RF] filters to address faster growing carrier aggregation market," and concerns about "increasing dual sourcing led competition in the low band market where SWKS participates." He could become positive on Skyworks if it makes further progress in lowering its dependence on mobile (still responsible for 80% of sales).
- Rival Qorvo (QRVO -0.4%) has simultaneously been upgraded to Neutral, after "discussions in Asia indicate improved execution on integration/share gains and higher proliferation of carrier aggregation design wins." Malik adds Qorvo gained content share with the Galaxy S7 and iPhone SE. "Fundamentally, we view carrier aggregation as a key theme for RF stocks with QRVO better positioned to expand its $ growth opportunity based on its comprehensive suite of products including BAW filters."
Thu, May 12, 5:16 PM
- Skyworks (SWKS -4.5%) has firmed up succession, naming Liam Griffin its new chief executive as its longtime CEO takes a new role as executive chairman.
- CEO David Aldrich will continue as chairman of the board. Griffin was elected to the board as well, effective yesterday.
- Aldrich had been CEO of Skyworks and predecessor Alpha Industries since 2000. For his part, Griffin joined Skyworks in 2001 as head of sales and marketing, and had previously led worldwide sales at Dover Corp. and held positions in AT&T's Microelectronics and Network Systems businesses.
- Previously: Apple -2.4% to new 52-week low amid Nikkei chip report aftermath (May. 12 2016)
- Now read Skyworks: Supplying All Sides In The Smartphone War »
Thu, May 12, 10:53 AM
- A 2.4% decline in Apple (NASDAQ:AAPL) -- making a fresh 52-week low today -- is being tied to the Nikkei report pointing to a rough year for iPhone suppliers.
- Nikkei's report said that chip shipments from Taiwan Semiconductor Manufacturing (TSM -1.2%) -- will be 70-80% of 2015 second-half levels.
- CNBC is saying that Apple's decline today makes Google parent Alphabet the largest U.S. company by market value, at about $498.6B.
- Meanwhile, among Apple's suppliers, steep declines are prevalent today: AVGO -2.2%, SWKS -3.9%, QRVO -2.9%.
- Shares in Apple are down 14.3% YTD, and down 28.4% over the past 12 months.
- Now read Apple: Nikkei Declares iPhone 7 Dead Before Arrival »
Thu, Apr. 28, 4:27 PM
- While its FQ2 results were nearly in-line, Skyworks (NASDAQ:SWKS) is guiding for FQ3 revenue of $750M and EPS of $1.21, below a consensus of $799.8M and $1.32. Major client Apple issued soft guidance on Tuesday.
- CFO Donald Palette: "During the June quarter we expect to be impacted by an inventory adjustment at a large customer, partially offset with gains across broad markets and crisp operational execution." Boosting FQ2 EPS: Gross margin rose 410 bps Y/Y to 50.8%. That fueled a 280 bps increase in op. margin to 36.8%.
- "Blended content" across Samsung's Galaxy S7 line rose by 20% relative to prior-gen models, and 10 "solutions" were designed into Huawei's flagship P9 phone. Wins for Cisco acesss points, Arris/Liberty Global set-tops, and devices from various Chinese OEMs are also reported.
- SWKS -2.5% after hours to $70.00.
- FQ2 results, earnings release
Tue, Apr. 26, 5:19 PM
- Apple (down 7.8% after hours) missed FQ2 estimates and guided for FQ3 revenue of $41B-$43B, below a $47.32B consensus. iPhone unit shipments fell 16% Y/Y to 51.2M, and iPad shipments 19% to 10.3M. Both figures were a little better than expectations. However, guidance points to another large Y/Y iPhone decline in FQ3.
- Cirrus Logic (down 4.2%) beat FQ4 estimates, but guided for FQ1 revenue of $220M-$250M, below a $257.5M consensus. Apple accounted for 62% of FQ4 revenue, and another customer (believed to be Samsung) 17%.
- Skyworks (NASDAQ:SWKS) is down 5.2% after hours. Qorvo (NASDAQ:QRVO) is down 5%. Broadcom (NASDAQ:AVGO) is down 3.8%. Qualcomm (NASDAQ:QCOM) is down 2.4%. NXP (NASDAQ:NXPI), which rallied earlier today thanks to a Q1 beat and solid Q2 guidance is down 2.5%. Nasdaq futures are down 0.9%.
Tue, Mar. 8, 2:36 PM
- Skyworks (SWKS -3.1%), Qorvo (QRVO -3.5%), and Jabil (JBL -3.8%) are among the ZTE suppliers selling off after the Chinese phone/telecom equipment vendor got hit with U.S. sanctions over the alleged re-exporting of controlled items to Iran. Qualcomm and various optical component vendors are also off. The Nasdaq is down 0.6%.
- The sanctions, which have stoked fears of Chinese retaliation, require U.S. ZTE suppliers to apply for an export license. The Commerce Department says it's operating under a "policy of presumption of denial" for granting licenses.
- Bloomberg estimates Jabil's quarterly ZTE sales total ~$35M. Rosenblatt's Jun Zhang sees a major hit to Qualcomm (NASDAQ:QCOM) and Skyworks' sales. "ZTE sold 55M smartphones in 2015, and we think the halt on order shipments will affect at least 25-30M units for 2Q16 and 3Q16, even though other smartphone OEMs will take market share away from ZTE. The impact to Skyworks and Qualcomm would be around $100-200M and $300-500M, respectively." Some of those sales, of course, could be picked up by rivals also buying from Qualcomm and Skyworks.
Fri, Mar. 4, 12:21 PM
- Skyworks (SWKS +6.3%) and Qorvo (QRVO +3.2%) are rallying after Broadcom (AVGO +6.9%) - known as Avago before closing its merger with Broadcom last month - beat FQ1 estimates and issued solid FQ2 guidance in spite of ongoing worries about weak iPhone sales in particular, and soft high-end smartphone demand in general. The guidance excludes businesses from classic Broadcom that the new Broadcom plans to sell, and which produced an estimated $295M in FY15 revenue.
- Possibly helping: Broadcom stated on the earnings call (transcript) it expects FQ2 to be "the trough for our wireless businesses for the rest of the fiscal year," and says it has already begun "pre-building in significant quantities" FBAR filters to support a 2H16 product cycle ramp with its North American customers (i.e. the iPhone 7).
- Broadcom added it expects "a substantial increase in our content" with the iPhone 7, and that also increased RF content with new flagship phones launched by its top Korean client (i.e. the Galaxy S7/S7 Edge). Wireless sales are expected to make up 23% of FQ2 revenue.
- The company also offered an upbeat outlook for its wired infrastructure ops, which (thanks to the addition of the old Broadcom) are expected to account for 55% of FQ2 sales. Growing ASIC sales for base stations and data center switches, higher ASSP sales for enterprise networking applications, last-mile fiber and DSL deployments, and a seasonal set-top refresh are expected to provide a lift.
- Enterprise storage, by contrast, is expected to be hurt by "seasonal declines" in hard drive and storage demand. Industrial chip sales are expected to rise slightly following an FQ1 shipment drop blamed on "lingering uncertainty in industrial end-markets." Storage and industrial are respectively expected to make up 17% and 5% of FQ2 sales.
- Canaccord's Mike Walkley (Buy, target hiked by $10 to $185) is pleased with Avago's implied earnings guidance, which benefits from M&A synergies and the planned asset sales. "We believe management will continue to execute on the recently closed Broadcom acquisition and achieve synergy targets given management’s strong track record in integrating acquisitions."
- Update: Along with its earnings/guidance, Broadcom has disclosed (through an 8-K filing) it plans to cut 1,900 jobs, and record $650M in related charges through FY18. Major post-merger job cuts were generally expected.
Tue, Feb. 16, 3:05 PM
- Plenty of tech companies are posting outsized gains on a day the Nasdaq is up 2%. Not surprisingly, many of the standouts are companies that have been hammered since New Year's.
- Notable gainers include action camera leader GoPro (GPRO +12.9%) and GoPro video processor supplier Ambarella (AMBA +6.2%), threat-prevention tech provider FireEye (FEYE +11.2%), supercomputer maker Cray (CRAY +19.5%), chip packaging/testing firm ChipMOS (IMOS +17.8%), point-of-sale hardware/software firm NCR (NCR +9.7%), Web hosting/domain registration firm GoDaddy (GDDY +9%), and driver-assistance system provider Mobileye (MBLY +7.4%). FireEye fell on Friday in the wake of its Q4 report.
- Other big gainers: RF chipmakers Skyworks (SWKS +6.4%) and Qorvo (QRVO +8.9%), 4G modem/M2M module maker Sierra Wireless (SWIR +8%), microcontroller/flash memory maker Cypress Semi (CY +7.5%), microphone maker Knowles (KN +8%), inventory-tracking hardware firm Zebra Technologies (ZBRA +8.5%), cloud HR software firm Paylocity (PCTY +7.8%), cloud collaboration/chat software firm Atlassian (TEAM +10.5%), touch controller/display driver vendor Synaptics (SYNA +7.8%), and online P2P lender LendingClub (LC +14.2%). LendingClub rallied last week after posting a Q4 beat and announcing a $150M buyback.
- Previously covered: Solar stocks, Chinese tech stocks, Groupon, Sonus, Black Box, Canadian Solar, Palo Alto Networks, Qualcomm
Fri, Jan. 29, 3:27 PM
- Several Apple suppliers are seeing major gains after iPhone power amplifier supplier Skyworks (SWKS +5.5%) and iPhone LCD driver IC supplier Synaptics (SYNA +10.6%) delivered their calendar Q4 reports yesterday afternoon - Skyworks beat estimates, while Synaptics (initially lower) missed on sales and beat on EPS.
- Both companies provided soft Q1 guidance (I, II) - Synaptics also suggested it's seeing weakness at multiple top smartphone OEMs . But with nearly every other iPhone supplier to have reported (not to mention Apple itself) having also guided light, shares are rallying nonetheless.
- Big gainers include mobile DRAM supplier Micron (MU +11.1%), microphone supplier Knowles (KN +11.2%), motion sensor supplier InvenSense (INVN +7.5%), audio codec chip supplier Cirrus Logic (CRUS +6.6%), NFC chip/motion co-processor supplier NXP (NXPI +5.9%), and RF chip suppliers/Skyworks rivals Qorvo (QRVO +6.8%) and Avago (AVGO +5.6%). The Nasdaq is up 1.8%.
- Micron could also be getting a lift from the market-pleasing reports delivered by hard drive giants Seagate and Western Digital, given Micron is exposed to many of the same end-markets as Seagate/Western.
Cirrus Logic is adding to the big Thursday gains seen after the company provided encouraging FY17 comments in its FQ3 earnings call. InvenSense has more than recovered the Thursday losses seen after the company provided soft FQ4 guidance and suggested it had lost share at Samsung.
- Possibly helping Synaptics out: When asked about M&A reports on the earnings call, CEO Rick Bergman didn't quite shoot them down. "[W]e're not going to comment on rumors or market speculation ... at the end of the day it is our job to maximize shareholder value so we'll listen to any great ideas that can do that and evaluate them appropriately."
Meanwhile, Bergman asserted Synaptics' TDDI (integrated touch controller/display driver) sales are due to ramp strongly thanks to numerous design wins at top LCD panel makers, and that its ClearForce pressure-response tech will be "a significant differentiator" for Synaptics' TDDI offerings.
Fri, Jan. 29, 9:15 AM
Thu, Jan. 28, 5:38 PM
Skyworks Solutions, Inc. engages in the design, development, and manufacture of proprietary semiconductor products. Its product portfolio includes amplifiers, attenuators, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF... More
Industry: Semiconductor - Integrated Circuits
Country: United States
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