Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today reported first fiscal quarter results for the period ending January 1, 2016. Revenue for the first fiscal quarter was $926.8 million, up 15 percent year-over-year and 5 percent sequentially, exceeding the First Call consensus estimate of $915.7 million.
On a non-GAAP basis, operating income for the first fiscal quarter of 2016 was $366.6 million, up 30 percent from $282.0 million in the first fiscal quarter of 2015. Non-GAAP diluted earnings per share for the first fiscal quarter was $1.60, $0.02 better than the First Call consensus of $1.58, and up 27 percent from the first fiscal quarter of 2015. On a GAAP basis, operating income for the first fiscal quarter of 2016 was $330.5 million and diluted earnings per share was $1.82.
From http://investors.skyworksinc.com/releasedetail.cfm?ReleaseID…
Matt
MasterCard (MA) Ticker Guide
Long SWKS
10 Likes
And from further down the release, this is what they project for current quarter.
Second Quarter 2016 Outlook
“Despite the current market environment, we expect to deliver earnings growth in the March quarter driven by strong gross margin performance and a disciplined approach with expenses,” said Donald W. Palette, executive vice president and chief financial officer of Skyworks. “Specifically, for the second fiscal quarter of 2016, we anticipate revenue of $775 million and non-GAAP diluted earnings per share of $1.24.”
Kevin
4 Likes
A few quick things stand out:
• Good, solid beat for current quarter
• Weaker than expected guidance, no?
• Non-GAAP gross margin 51.4%!
• Non-GAAP operating margin 39.6%
• Over $1.2 billion in cash
We’ll obviously know more after the conference call in a few minutes. What’s everybody else thinking?
Matt
MasterCard (MA) Ticker Guide
Long SWKS
2 Likes
Anyone listening to the earnings call?
“We are targeting 50% plus operating margins”
Did I also hear correctly, “we are targeting $8 per share EPS”?
2 Likes
So…does Skyworks have a history of under-promising and over-delivering?
Net Margin was about 38% this quarter (wow). To achieve 1.24 on 775M, margins would be about 31%. Certainly seems achievable.
Wouldn’t be surprised if both the 775M and the 1.24 turn out to be lowball numbers.
4 Likes
I just finished the call. Great call, very upbeat. Things are a little slower next quarter due to Apple (but will still grow EPS nearly 8% despite that, showing their great operational strength), and see a very bright second half of the year due to upcoming launches (“not just wishful thinking” is how I believe Aldrich put it).
They also commented on TDK/Qualcomm, and do not see it as a threat. TDK and QCOM have been partnered for years, and while they’ve seen success in some areas, it’s not areas in which SWKS competes.
Macro tailwinds are all still in place, the broad markets category (which includes IoT and is their highest-margin category) continues to grow and will especially do so in the second half. They continue to get more and more content wins, continue to expand into more verticals. In mobile, they’re already working on 2018-year flagship models, and they don’t see many other companies that can compete at the level they’re playing at.
Overall, I’m pretty pleased and happy to be a shareholder. I definitely recommend listening to the call (or reading the transcript when it comes out), as a number of good questions were asked and answered.
Neil
Long SWKS
42 Likes
Neil, thanks for the nice summary…
Things are a little slower next quarter due to Apple
Did they also mention Samsung, which confirmed Apple’s lowered outlook with their own poor earnings and outlook?
Here are some of SWKS’ updated numbers as they look after their 2016 Q1 earnings report:
Skyworks (SWKS)
Revenues (millions) Q1 Q2 Q3 Q4
2013 453.7 425.2 436.1 477.0
2014 505.2 481.0 587.0 718.2
2015 805.5 762.1 810.0 880.8
2016 926.8
Earnings (per share) Q1 Q2 Q3 Q4
2013 0.55 0.48 0.54 0.64
2014 0.67 0.62 0.83 1.12
2015 1.26 1.15 1.34 1.52
2016 1.60
Current (2016 Q1 Earnings):
Revenue Growth (millions)
2015 Q1 TTM Revenue = 2591.7
2016 Q1 TTM Revenue = 3379.7
Year Over Year Revenue Growth = 30.4%, previous Q 42.2%
Earnings Growth (per share)
2015 Q1 TTM Earnings = 3.83
2016 Q1 TTM Earnings = 5.61
Year Over Year EPS Growth = 46.5%, previous Q 62.7%
P/E = (Check Current Price) 64.79/5.61 = 11.55
1YPEG = 0.25
Matt
MasterCard (MA) Ticker Guide
Long SWKS
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx
17 Likes
Overall, I’m pretty pleased and happy to be a shareholder.
I am absolutely thrilled, myself. Thank you to Saul and others on this board that lead me here.
Now I’m just worried that with their share price so low, Qualcomm or someone else will step in and buy them out. While a quick 30-50% gain might seem attractive, that’s nothing compared to what one will make if they hold this for the next 5-10 years.
I definitely recommend listening to the call (or reading the transcript when it comes out), as a number of good questions were asked and answered.
Absolutely. After listening to their November investor presentation and then this call, I am really impressed with the management team. They actually speak in a way you can understand…not all the cryptic garbage of most calls, which seem more designed to obfuscate than enlighten. They remind me of Fastenal. I guess when you have phenomenal businesses and phenomenal management, you can afford to be straightforward and just tell it like it is…because what it is sensational. I think the biggest point that came through loud and clear in both was that Skyworks’ capabilities in designing the complete system are simply unparalleled, and so therefore they are not threatened simply if someone else has some filter they don’t (yet). They’re the king of the hill already, it would seem, and the industry dynamics would suggest they’ll just separate themselves further from the pack…including the “new” Qualcomm JV. Couldn’t ask for more out of a business. This is already a very large position for me, but kind of wishing I had scooped up even more at $61.
6 Likes
Thanks to what I have read on these boards I recently opened a position with SWKS.
I bought at $59.40, 59.74, 60.37, 66.03, 66.51
Bought over several days. Now have a 6.54% allocation. Am up 12.72% (averaged) since inception dates 1/15, 1/20, 1/22, 1/25, 1/26.
Kinda hurky jerky, I know. But that’s how I am.
Thanks for the help,
Frank 
Continuing to like the prospects for this company.
Hope I am / we are, right.