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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.
- 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.
- Skyworks' earnings will be announced on April 22, with revenue projected at $470.26 million for the quarter.
- Smartphone growth in emerging markets and Apple's relationship with China Mobile will drive revenue growth in the coming year.
- The advancement of Machine-to-Machine technology and the Internet of Things industry make Skyworks a well-positioned play.
- Skyworks has a cheap valuation and financials that beat its peers.
Skyworks: A Few Convincing Reasons Why You Should Buy This Apple Supplier
- Even after 33% appreciation in 2014, Skyworks Solutions still has a lot of room to grow.
- The company has added a suite of products to benefit from the increasing deployment of LTE.
- LTE handsets are expected to double in volume in 2014 and Skyworks is set to benefit from it.
- Apple’s iPhone 6 can also provide a massive boost in 2014.
- Skyworks is a great buy at present valuations and the proposed plan to initiate a dividend makes it even more lucrative.
Missing This Stock Means Missing A Lucrative Investment
Fri, Aug. 29, 11:03 AM
- Avago (AVGO +8.1%) has received a slew of target hikes after beating FQ3 estimates, reporting strong margins, and issuing healthy FQ4 guidance. RF component peers Skyworks (SWKS +1.6%), RF Micro (RFMD +4.5%), and TriQuint (TQNT +5.2%) are also higher.
- "We believe Street continues to under-appreciate this self-help story where mgmt has a proven record of cutting costs, paying down debt, and executing on multiple secular growth cycles," says BofA/Merrill. Its FY14 and FY15 EPS forecasts have respectively been raised by 20% and 25%.
- Credit Suisse: "Avago's leverage to structural growth drivers including content increases in the Industrials/autos end-mkts and accelerating demand for bandwidth, as well as, product cycles (4G/LTE wireless ramps at Apple and China) should allow the company to outperform peers." The diversification provided by the LSI deal is seen providing "further stability."
- Morgan Stanley expresses "high conviction in management's ability to execute on driving LSI's [operating margin] from 17% to 30% over the next few years," given Avago has doubled its op. margin to 30% since its 2005 LBO.
- On the CC (transcript), CEO Hock Tan mentioned wireless sales are expected to rise over 60% Q/Q thanks to "the ramp of a new phone model and a North American smartphone customer" (a clear iPhone 6 reference). Demand for FBAR filters and related products in 4G phones remains strong.
- Wired infrastructure is expected to grow at a low-single digit rate (switch/router ASIC growth offsetting flat optical component demand), and enterprise storage is expected to see mid-single digit growth excluding the PLX acquisition.
Fri, Jul. 18, 2:51 PM
- "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%.
Thu, Jul. 17, 5:19 PM
- In addition to beating FQ3 estimates, Skyworks (NASDAQ:SWKS) is guiding for FQ4 revenue of $680M and $1.00, soundly above a consensus of $608.1M and $0.87. The numbers come 6 weeks after Skyworks hiked its FQ3 outlook.
- Gross margin +70 bps Q/Q and +140 bps Y/Y to 45.4%. GAAP opex +11% Y/Y to $115.7M, trailing rev. growth of 35%. 1M shares were repurchased.
- RF Micro (RFMD - reports on July 24) is following Skyworks higher. Merger partner TriQuint (TQNT - reports on July 23) might end up doing the same. Skyworks is once more near a 52-week high of $49.10.
- FQ3 results, PR
Thu, Jul. 17, 4:25 PM| 1 Comment
Wed, Jul. 16, 5:35 PM
Tue, Jun. 3, 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).
Tue, Apr. 22, 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
Tue, Apr. 22, 4:20 PM| Comment!
Tue, Apr. 22, 12:10 AM
Mon, Apr. 21, 5:35 PM
Wed, Feb. 26, 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
Thu, Jan. 16, 5:58 PM
- In addition to beating FQ1 estimates, Skyworks (SWKS) is guiding for FQ2 revenue of $470M and EPS of $0.59, above a consensus of $460.5M and $0.57.
- The RF chipmaker posted an FQ1 gross margin of 44.5%, +10 bps Q/Q and +150 bps Y/Y. Opex was flat Y/Y, even as revenue rose 11%. 670K shares were repurchased.
- Shares have jumped to new 52-week highs in AH trading. Rivals are up in sympathy: RFMD +1.7%. TQNT +2.2%.
- FQ1 results, PR
Thu, Jan. 16, 4:32 PM| 2 Comments
Thu, Jan. 16, 12:10 AM
Wed, Jan. 15, 5:35 PM
Nov. 7, 2013, 3:59 PM
- Though some bad news was expected thanks to the guidance provided by mobile chip peers in recent weeks, Qualcomm (QCOM -3.8%) continues to slump in response to its soft FQ1 guidance, which reflects a big expected slowdown in chip shipment growth, and mixed FY14 guidance (above-consensus EPS, but below-consensus revenue).
- On its CC (transcript), Qualcomm mentioned its chip division (QCT) growth will "moderate" in FY14 in part due to product mix - the fact the high-end smartphone market is "increasingly concentrated" (i.e. Samsung and Apple dominate) is said to affect QCT's sales and margins. While both Apple and Samsung are Qualcomm baseband chip clients, Apple relies on its own app processors, and Samsung partly does so.
- At the same time, Qualcomm, which has been aggressively ramping R&D spend in recent quarters, says it will "control expenses" in FY14, and will exit FY14 with a lower opex run rate than it exited FY13 with. That, along with $4B in planned buybacks, is a major reason why FY14 EPS guidance is above consensus.
- Goldman (Buy) is pleased with Qualcomm's FY14 3G/4G device ASP guidance of $216-$230, which implies only a 1% drop at the midpoint. It also likes Qualcomm's Chinese 4G optimism and guidance for 15% 2014 3G/4G device growth. Nomura (Buy) is disappointed with Qualcomm's FQ1 demand, but also declares the company is "demonstrating more leverage" than expected.
- Other mobile chipmakers are also underperforming: TQNT -5%. ANAD -4.3%. SWKS -3.5%. RFMD -3.1%. OVTI -2.8%.
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