Skyworks reported strong third quarter fiscal 2014 results with
adjusted earnings exceeding the Zacks Consensus Estimate by $0.12.
Skyworks continues to benefit from strong underlying demand in the
mobile Internet sector, backed by market share gains and new
product launches. The company is also expanding its footprint in
complementary new verticals such as medical, automotive, military
and industrial markets, and continues to gain traction in the
adjacent verticals as well. However, macroeconomic uncertainty and
stiff competition might peg back its profitability to some extent
going forward. Nevertheless, we maintain our long-term Outperform
recommendation for the stock as we expect it to perform well above
the broader market.
Headquartered in Woburn, Massachusetts, Skyworks Solutions Inc.
was formed in 1962. The company changed its name to Skyworks
Solutions from Alpha Industries Inc. on June 25, 2002. Skyworks
Solutions designs, manufactures, and markets a broad range of high
performance analog and mixed signal semiconductors that enable
wireless connectivity. The company's products include power
amplifiers (PAs), front-end modules (FEMs), radio frequency (RF)
sub-systems, and cellular systems. Leveraging its core analog
technologies, the company also offers a diverse portfolio of linear
integrated circuits (ICs) that support automotive, broadband,
cellular infrastructure, industrial and medical applications.
The company has designed its product portfolio around two
markets cellular handsets and analog semiconductors. The handset
portfolio includes highly customized power amplifiers and front-end
solutions that are used in a variety of cellular devices from entry
level to multimedia platforms and smartphones. The primary
customers include Cisco, Ericsson, Foxconn, General Electric,
Google, Honeywell, HTC, Huawei, Itron, LG Electronics, Nokia,
Northrop Grumman, Philips, Samsung, Sensus, Siemens, Toshiba and
Skyworks Solutions Inc. (SWKS): Read the Full
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