http://seekingalpha.com/article/3352985-skyworks-solutions-s…
If anyone is interested in SWKS and hasn’t read the conference call, you should. You will rarely encounter management so euphoric about their position in the industry and their outlook for the future. And constantly RISING margins! The exact opposite of what you are supposed to see in chip companies because they are supposed to become commodities. What fun to read!
Saul
It certainly is an optimistic earnings call particularly when they field the Q&A.
So they say they should be at $7 EPS by 2016 which gives them a pretty low forward PE based on today’s stock price.
Seems reasonable to try to estimate what the value of SWKS is relative to other chipsters:
Sorry…hit the submit by mistake:
http://seekingalpha.com/article/3328755-skyworks-inexpensive…
Not the best article in the world, but does attempt to value the shares today vs other chip stocks.
It certainly doesn’t sound like SWKS is concerned about a slowdown in phone sales which got the investment world all frazzled last week. China and upgrades to 4 G still expected to grow the phone pie along with their other opportunities (IOT, etc.).
So Saul, in your estimation, is SWKS fairly valued today or what do you expect from this stock in the coming 1-3 years?
So they say they should be at $7 EPS by 2016 which gives them a pretty low forward PE based on today’s stock price.
I’m not sure what they meant by this. I think they said $7 on an annualized basis. So is it hitting $1.75 in a single quarter ($7 divided by 4) or $7 in TTM Adj EPS?
Chris
Chris,
That would by my assumption.
Jim
Sorry, Chris,
$1.75 in a single quarter would be my assumption.
Jim