Update: Skyworks Solutions' Q1 Earnings Offer Good News For Investors
- Skyworks Solutions reported excellent Q1 FY 2015 earnings..
- The company is witnessing great gains from the iPhones and this should continue.
- Skyworks also landed many new design wins that can propel growth in 2015.
- Skyworks is a hold at present valuation.
- Skyworks Solutions' earnings are due on 22nd January.
- The company may beat Street estimates again due to the soaring sales of the iPhones.
- Skyworks is also well positioned to benefit from the 4G LTE market.
- Investors should continue holding Skyworks.
Analysts Have Mixed Ratings For Skyworks Solutions
- Since we recommended buying Skyworks in October 2013, its share price has appreciated 169.45%.
- From a long-term perspective, several factors continue to bode well for Skyworks, despite current gains.
- It is prudent to book profits at current levels as valuation has become pricier, while some momentum and seasonal headwinds are developing.
Skyworks: The Explosive Growth Catalyst Management Can't Talk About
- Skyworks' business is firing on all cylinders, thanks to highly visible industry tailwinds.
- "Connecting the dots" from public filings reveals a development agreement for a disruptive technology that could transform the company's profitability in a matter of months.
- Margins for RF filters could increase as much as 55%.
- A rare opportunity to exploit informational advantage.
- Skyworks has raised its revenue and earnings outlook for the fourth quarter of fiscal 2014.
- Skyworks will continue to benefit from the success of Apple's iPhone 6 and iPhone 6 Plus new smartphones.
- Skyworks has been able to record double-digit earnings and revenue growth six quarters in a row and an earnings per share surprise in each one of the last four quarters.
An Important Update On The New Internet 'Gold Rush'
3 Reasons Why This Tech Stock Will Continue To Grow
- Skyworks Solutions has appreciated almost 100% in 2014.
- The company beat analysts' estimate yet again, and should continue soaring.
- Skyworks is well-positioned to benefit from the Internet of Things.
- The launch of Apple's iPhone 6 is expected to benefit Skyworks.
- Skyworks is still a great buy.
Skyworks Solutions: An Investment Opportunity In A Fast-Growing Tech Stock
- Skyworks will benefit from the highly anticipated next month's Apple's iPhone 6 launch.
- Skyworks is an excellent combination of a good value and strong growth tech stock.
- Skyworks has been able to record double-digit earnings and revenue growth six quarters in a row.
- Skyworks (SWKS) Q3 earnings should leave investors feeling more confident than ever.
- Recent guidance has confirmed my buy/hold thesis and raised my target price derived from a combination of comparable companies and DCF analysis to $60.
- While the stock rose significantly following earnings, there is still more upside in the tank.
Skyworks: Short- And Long-Term Catalysts Still Abound
- Mobile device releases over the next few quarters will act as a short-term catalyst for Skyworks.
- The Internet of Things (IoT) will provide sustainable earnings growth as a long-term catalyst.
- Skyworks has seen huge gains YTD, but there is still plenty of stock appreciation left in the tank.
- Skyworks supplies to some of the biggest and best-in-class businesses in the world.
- Internet of Things and rapid efforts in technology advancements are likely to accelerate Skyworks' growth going forward.
- Impressive financials, tendency to beat analysts' expectations, raised guidance, and initiation of a dividend program make for an exciting stock.
- Skyworks and Apple keep hitting 52-week highs. If you're considering selling at these levels, don't do it; both companies are heading higher.
- Skyworks raised third-quarter guidance, which bodes well for Apple.
- Apple and Skyworks are both well-positioned to benefit from the "Internet of Things".
- China provides growth for both Apple and Skyworks.
- The release of the iPhone 6 will bolster both Apple's and Skywork's sales.
Skyworks Solutions' Fundamentals Make It A Concrete Buy
- SWKS has the highest combined Equities Lab Buzz, Income Statement, Balance Sheet, Value, and Cash Flow Score in its entire industry.
- The stock appears undervalued by at least 20% based on its forward P/E, price to free cash flow, and price to cash flow.
- The numerous fundamental green flags make SWKS a solid long-term buy.
- Skyworks Solutions Inc. has an outstanding existing customer base.
- The company's financial strength is unparalleled in its industry and still trades at a discount to peers.
- The demand for its products will continue to grow in today's internet of things.
Skyworks Solutions: 3 Different Insiders Have Sold Shares During The Last 30 Days
- 3 insiders sold Skyworks stock within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- 2 of these 3 insiders decreased their holdings by more than 10%.
- Skyworks beat estimates with $481 million in revenue, up 13% year over year, and $0.62 diluted EPS, up 29% year over year.
- Estimates for Q3 are $535 million in revenue and diluted EPS of $0.73.
- Historical analysis of Skyworks shows that it is trending upwards and poised for growth as a result of smartphones and the Internet of Things industry.
Jun. 25, 2014, 6:22 PM
- Black Sand Technologies, based out of Austin, was founded in '05 and has raised $28.2M in funding over its history.
- Notably, the product page on Black Sand's site only shows 3G amplifiers, and the most recent PR on its news page is from 2012. All signs suggest Qualcomm (QCOM) is buying the company to strengthen its power amplifier IP and/or engineering talent, as it encroaches on the turf of established vendors such as Skyworks (SWKS), TriQuint (TQNT), RF Micro (RFMD), and Avago (AVGO) with system-level solutions.
- Qualcomm, estimated to have 64% of the 2013 baseband processor market, made a dramatic entry into the amplifier market last year by announcing an RF front end solution (amplifiers included) that promised superior 3G/4G multi-band support and (via technologies such as envelope tracking) power efficiency. Skyworks, TriQuint, and RF Micro all tumbled following the announcement.
Jun. 3, 2014, 9:33 AM
- Skyworks (SWKS) now expects FQ3 revenue of $570M and EPS of $0.80, well above prior guidance of $535M and $0.73, and a consensus of $535.5M and $0.73.
- The RF component vendor notes it's "capitalizing on the growing opportunity within the Internet of Things" (read: embedded opportunities), and "increasing analog complexity associated with higher data rate connectivity standards" (read: 4G and 802.11ac Wi-Fi). The momentum is expected to last beyond FQ3.
- Skyworks adds it expects its new Panasonic RF filter JV to deliver at least 100 bps of gross margin accretion in FY15 (ends Sep. '15).
May. 29, 2014, 12:50 PM
- After pricing its 2.7M-share IPO at $6 (in-line with expectations), Resonant (RESN) opened at $10 and is currently at $8.91, up 48.6%. That gives the RF filter developer a $57.7M valuation.
- Resonant, still in development-stage, has developed filter technology (referred to as ISN) it asserts can both deliver improved performance and enable tunable designs (can cut down on a device's filter count and save space).
- The company is looking to strike licensing deals that involve royalty payments for RF front-end modules using its IP. It had a Q1 net loss of $3.95M.
- Resonant has a partnership with RF component giant Skyworks (SWKS +1.8%) to develop an RF duplexer it thinks can cost less than half as much as rival solutions. It also plans to develop tunable filter designs on its own.
- Superconductor Technologies (SCON -0.7%) owns 11.6% of Resonant post-IPO.
Apr. 28, 2014, 11:09 AM
- Skyworks (SWKS - unchanged) and Panasonic (PCRFY) are forming a JV to develop SAW filters for mobile devices and other products.
- Skyworks will pay $148.5M in cash for a 66% stake in the JV, which will be have 590 employees and facilities in Japan and Singapore. The deal is expected to close by the end of calendar Q3, and be immediately accretive to margins and EPS.
- Rival Avago (AVGO -1.4%) is trading lower. Avago has differentiated its RF modules (particularly for 4G designs) partly through the use of FBAR filters (a type of BAW filter) offering better performance than SAW alternatives
- Morgan Stanley estimated last fall Avago has a ~70% share of the premium filter market, and predicted the market will grow to $1.75B in 2015 from slightly over $800M in 2013. TriQuint (TQNT -0.2%), about to merge with RF Micro (RFMD +0.8%), was estimated to have the remaining 30%.
- Skyworks asserts the JV is complementary to its ongoing BAW filter investments, and that Panasonic is the leader in the growing market for high-performance TC SAW filters - typically more expensive than traditional SAW filters, but cheaper than BAW filters. The company predicts the deal will allow it to "develop customized solutions for any band configuration where filter technology is applicable."
Apr. 23, 2014, 9:17 AM
Apr. 22, 2014, 5:40 PM
Apr. 22, 2014, 4:46 PM
- In addition to beating FQ2 estimates, Skyworks (SWKS) is guiding for FQ3 revenue of $535M and EPS of $0.73, well above a consensus of $488.2M and $0.63.
- Gross margin rose 250 bps Y/Y to 44.7%. While revenue rose 13% Y/Y, opex only grew 2% to $109.8M. 2M shares were repurchased.
- Rival RF Micro (RFMD) is up in sympathy ahead of its April 29 FQ4 report. Others that might get a lift: TQNT, AVGO, ANAD.
- FQ2 results, PR
Apr. 22, 2014, 4:20 PM| Comment!
Apr. 22, 2014, 12:10 AM
Apr. 21, 2014, 5:35 PM
Apr. 2, 2014, 7:06 PM
- A Chipworks teardown of Samsung's Galaxy S5 has turned up six Qualcomm (QCOM) chips: Two power management ICs, two RF transceivers, an audio codec IC, and the previously-disclosed Snapdragon 801 baseband/app processor.
- One of the power management ICs is part of Qualcomm's much-hyped RF front end, and improves 4G battery life via envelope tracking. Google/LG's Nexus 5 also contains the chip.
- Three Avago (AVGO) RF components are also inside the S5, including a 2G/3G/4G module. It's worth noting a phone's RF circuitry can vary depending on the particular market it's being sold into.
- Other components include an Audience (ADNC) voice processor, a Lattice Semi (LSCC) FPGA, an RF Micro (RFMD) antenna control chip (the company has strong Galaxy S4 exposure), and a Silicon Image (SIMG) MHL video transmitter IC.
- A previous teardown from a Russian site revealed components from Maxim, Synaptics, NXP, InvenSense, and Skyworks (SWKS). Aside from the Skyworks components (apparently swapped out for Avago parts in Chipworks' S5 model), the Chipworks teardown largely turns up the same parts.
- Earlier: Snapdragon 600 inside Amazon's Fire TV set-top
Mar. 31, 2014, 6:52 PM
- An early teardown (translation) of Samsung's (SSNLF) Galaxy S5 has turned up the same 6-axis InvenSense (INVN) motion sensor found in the Note 3. The InvenSense part displaces the STMicroelectronics (STM) motion sensor found in the S4.
- Multiple Maxim (MXIM) power ICs were also uncovered. Though Barclays thinks Maxim lost the gesture IC slot it had in the S4 to rival AMS, it nonetheless thinks its dollar content grew ~10% (previous).
- An NXP (NXPI) NFC controller/secure element displaced the Broadcom (BRCM) NFC chip that went into the S4; Barclays estimates the design win will be worth $50M-$60M to NXP, assuming average content of $1. Broadcom is still expected to get $4/unit for supplying the S5's Wi-Fi/Bluetooth combo chip.
- Synaptics (SYNA) is believed to have the S5's touch controller slot and (though not revealed in the teardown) its fingerprint/swipe sensor slot. The company's S4 touch controller win delivered a windfall.
- Though a Skyworks (SWKS) power amplifier module and discrete amplifier were found, and a Wi-Fi filter is believed to be present, Barclays thinks Skyworks' content share likely fell, thanks to the absence of Wi-Fi switch/LNA content. It also thinks the total value of the S5's Wi-Fi RF content is lower due to Broadcom's use of internal power amplifiers (possibly a negative for S4 supplier ANAD).
- Separately, DisplayMate calls the S5's OLED display "the best-performing smartphone display we have ever tested," after doing an in-depth analysis. The display's color accuracy, brightness, ambient lighting performance, and power efficiency all receive high marks. OLED materials/tech supplier Universal Display (OLED) will be happy to hear that.
Mar. 17, 2014, 2:32 PM
- China Mobile's decision (officially announced on Friday) to require all 4G phones sold by the company as of May 31 to support five air interfaces should bolster Qualcomm's (QCOM +3.4%) 4G baseband chip sales and Chinese royalty collections, thinks Goldman's Simona Jankowski.
- Jankowski observes Qualcomm "has the most mature and broad portfolio" of 5-mode mobile SoCs, and that the company could have an easier time collecting royalties from Chinese OEMs on sales of phones supporting the globally-adopted 4G FDD-LTE and 3G W-CDMA standards. Qualcomm has had trouble collecting on sales of phones supporting China Mobile's 3G TD-SCDMA standard (but not W-CDMA).
- She also points out China Mobile is hoping to sell 100M 4G phones this year, after having launched commercial 4G services in late 2013. The Chinese government's antitrust probe remains an overhang, though as Jankowski notes, that's tied to royalty rates rather than Qualcomm's right to collect.
- Previous: Qualcomm could benefit from China Mobile 5-mode requirement
- Update: SA commenter Philip Marlowe notes RF component makers (RFMD, TQNT, SWKS, AVGO, ANAD) should also benefit from the policy change, as 5-mode phones require more RF circuitry than 3-mode phones.
Mar. 5, 2014, 6:06 PM
- After growing ~60% in 2013 (and fueling global shipment growth of 39%), IDC expects Chinese smartphone shipment growth to slow to ~20% in 2014 and just ~10% in 2015.
- Though only 40% of China's 1B+ mobile users now use a smartphone, IDC's Kiranjeet Kaur notes most users who can comfortably afford a smartphone have already bought one. Plunging low-end Android prices could expand the addressable market in a country whose nominal per capita GDP is around $6K.
- India, which has a sub-10% smartphone penetration rate, still presents a major growth opportunity. But with a nominal per capita GDP of ~$1,500, the country is even more cost-sensitive than China.
- With China slowing down and developed markets living up to their name, IDC expects global smartphone growth to slow to 19% in 2014; that still spells total volumes of 1.2B. Tough competition and the ongoing mix shift towards emerging markets is expected to lead the industry's ASP to fall $27 to $308.
- Smartphone OEMs with strong Chinese exposure: AAPL, SSNLF, LNVGY, ZTCOY
- Chip suppliers: QCOM, BRCM, CRUS, SWKS, RFMD, MRVL
- Chinese carriers: CHL, CHU, CHA
Feb. 26, 2014, 11:24 AM
- Chip stocks are outperforming (SOXX +1.1%) after Avago (AVGO +5.1%) posted an FQ1 beat and strong margin numbers (albeit while guiding light, as many expected), and STMicroelectronics (STM +3.9%) exec Paul Grimme states his company's European sales are stabilizing, with Germany leading the way.
- Notable winners: AMBA +5.4%. AMCC +5.2%. CRUS +3.3%. SWKS +3%. QUIK +4.1%. INVN +2.7%. RFMD +3.5%. TQNT +3%. SIMO +2.7%. CAVM +3.6%. Nearly all of the aforementioned names have strong mobile and/or telecom equipment exposure.
- RBC has hiked its Avago PT to $66 from $64, and says the chipmaker remains its "top play on China and global LTE deployments." With LSI in tow, the firm thinks FY15 (ends Oct. '15) EPS will top $5.
- Morgan Stanley ($68 PT) is confident Avago can raise LSI's op. margin to 30% from 17% over the next few years, much as the company has doubled its own op. margin to 30% post-LBO.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Feb. 24, 2014, 9:21 AM
- Skyworks (SWKS) is up 3.2% premarket, Qualcomm (QCOM) is up 1%, and Anadigics (ANAD) is up 3.7% following news RF component vendors TriQuint and RF Micro are merging. The merging companies themselves are up sharply.
- RF Micro/TriQuint, which comes on the heels of Avago/LSI, appears to be fueling hopes of additional consolidation in the RF component space. There might also be expectations rivals will be able to take share, as common customers such as Apple and Samsung try to stay diversified.
- Though Qualcomm's chip unit is best known for its baseband and app processors, it also has a large and growing RF component business, one Qualcomm hopes to expand via its innovative/ambitious RF front end platform.
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