Skyworks (SWKS) Beats Q4 Earnings As Revenues Fall Y/Y
Zacks Investment Research | Nov 03, 2016 11:24PM ET
Skyworks Solutions Inc. (NASDAQ:SWKS) reported fourth-quarter fiscal 2016 non-GAAP earnings (including stock-based compensation) of $1.37 per share, which beat the Zacks Consensus Estimate by 4 cents but declined 1.7% from the year-ago quarter.
Earnings (excluding stock-based compensation) were $1.47 per share better than management’s guidance of $1.43.
Revenues of $835.4 million were down 5.2% year over year but ahead of its guidance and Zacks Consensus Estimate of $832 million.
Fiscal 2016 earnings (including stock-based compensation) increased 8.4% year over year to $5.16 per share. Revenues increased almost 1% to $3.29 billion.
Quarter Details
Skyworks continues to capitalize on global mobile connectivity and demand for high-performance solutions across a diverse set of verticals and the Internet of Things market. As customers implement the next level of functionality for higher bandwidth, consequently demand for system-level solutions and higher levels of integration are increasing. These in turn are playing directly into Skyworks' strengths and generating huge demand for its products.
Moreover, the company’s dominant position in the transmit chain with Power Amplifier and Power Amplifier plus Duplex or SkyOne-like systems is benefiting results. Syworks noted that it currently has almost 30% to 40% market penetration with adoption increasing from the likes of Huawei, Oppo and Vivo in China.
Skyworks stated that it is focused on addressing the needs of top-four or five players in China. According to the company, it is looking to continue partnerships with MediaTek, Spreadtrum, HiSilicon and even Qualcomm (NASDAQ:QCOM) that diversifies its business model in the country.
Skyworks continued to gain broad market traction during the quarter. The company stated that Huawei used SkyOne architecture across its Honor 8 smartphone platform. Skyworks also powered Google’s flagship Pixel 4G LTE smartphone.
In the Internet of Things (IoT) market the company continues to win orders from customers like Amazon.com (NASDAQ:AMZN) . Netgear (NASDAQ:NTGR) is also using Skyworks to support its Orbi home router system. Additionally, the company is deploying small-cell solutions for several leading infrastructure providers in China.
In the automotive market, Skyworks delivered 4G LTE solutions for use in both Land Rover and Jaguar models.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.