Skyworks (SWKS) Q2 Earnings Beat, Revenues Miss Estimates
Zacks Investment Research | May 03, 2018 10:37PM ET
Skyworks Solutions Inc. (NASDAQ:SWKS) delivered second-quarter fiscal 2018 non-GAAP earnings of $1.64 per share, which beat the Zacks Consensus Estimate by 4 cents. The figure improved 13.1% from the year-ago quarter but declined 13.1% on a sequential basis.
Revenues of $913.4 million were up 7.2% year over year but down 13.2% sequentially. The reported figure missed the Zacks Consensus Estimate of $914 million.
Both earnings and revenues came ahead of management’s guidance. The better-than-expected performance was driven by worldwide demand for its wireless communications engines. The results reflected Skyworks’ growing clout in the connectivity solutions and 5G markets. Meanwhile, the company’s solutions continue to capture strategic design wins across the broad markets.
Adoption of Connected Home Solutions: Key Catalyst
The emergence of connected homes, autonomous vehicles, artificial intelligence (AI), augmented reality, wearables and network infrastructure presents significant growth opportunity for Skyworks’ connectivity solutions.
In the quarter, Skyworks powered connected home and virtual assistant systems at Bosch, Amazon (NASDAQ:AMZN), GE, AT&T/DIRECTV, Netgear, Sonos and Google (NASDAQ:GOOGL).
Across broad markets, the company ramped Wi-Fi, fully-integrated Zigbee and Thread devices for Nest’s portfolio of video doorbells.
Further, management is elated that world’s largest automotive manufacturer leveraged its connectivity solutions.
Other Developments in the Quarter
In the wearables segment, Skyworks supported Forerunner fitness smartwatches for Garmin. The company also enabled Honeywell’s LTE handheld enterprise hubs. The company witnessed additional design wins for its high-speed mesh networks at Belkin.
The company partnered major European network infrastructure suppliers to support small cell deployments in the quarter including Verizon, AT&T (NYSE:T), Vodafone (LON:VOD) and T-Mobile. It furnished massive MIMO solutions to India’s largest network carrier.
The company launched a new suit of network-driven solution that supports wireless 5G networks, called Original post
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