Skyworks Solutions, Inc.
) recently announced that several of its front-end solutions are
being leveraged by the industry's leading baseband providers for
their smartphone platforms which currently support world's leading
mobile broadband standards.
Skyworks continues to weather the turbulent economic conditions
well. The company has strategically positioned itself as a
diversified company. Skyworks continues to benefit from strong
underlying demand in the mobile Internet market driven by market
share gains and new product ramps. Skyworks saw a healthy holiday
season demand across all categories of mobile Internet devices,
including smartphones, e-readers and tablets.
According to Skyworks, several of its newest power amplifiers
and front-end modules deliver approximately 50% power added
efficiency with a 30% smaller footprint.
In particular, Skyworks' solutions are compatible with the
world's first fully integrated long-term evolution (LTE) modem
chipset which contains an integrated dual core application
processor for smartphones, tablets and other mobile devices.
As carriers like Verizon and AT&T accelerate their
LTE plans, Skyworks expects a solid opportunity for growth in the
coming years with its broad product portfolio.
Last month, Skyworks Solutions posted a net income of $57.1
million or 30 cents per share in the first quarter of fiscal 2012
compared to a net income of $60.8 million or 32 cents per share in
the year-ago quarter and a net income of $64.2 million or 34 cents
per diluted share in the fourth quarter of fiscal 2011.
Earnings estimates have moved a bit lower of late. The current
Zacks Consensus Estimate is $1.58, down by $0.02 in the last seven
days. One of the five analysts covering the stock has decreased his
estimate for 2012.
Skyworks reported revenues of $393.7 million in the first
quarter, up 17% year over year and surpassed management's guidance
of $390.0 million.
Going forward, management expects revenues of approximately $360
million in the second quarter of fiscal 2012. Gross margin is
projected at around 43.0% - 43.5%. Skyworks expects EPS of 40 cents
in the third quarter.
We continue to maintain a Neutral recommendation on Skwyorks.
Nevertheless, we have a Zacks #2 Rank on the stock which translates
into a short-term rating of Buy.
SKYWORKS SOLUTN (
): Free Stock Analysis Report
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