Skyworks Reports 2017 Q2 Earnings

Investment Analysis Clubs Saul’s Investing Discussions
1

I’m happy with the results at first look over. Shares are down about 2% in AH trading. From the press release:

Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today reported second fiscal quarter results for the period ending March 31, 2017. Revenue for the second fiscal quarter was $851.7 million, up 10 percent year-over-year and exceeding consensus estimates.

On a GAAP basis, operating income for the second fiscal quarter of 2017 was $281.2 million with diluted earnings per share of $1.20. On a non-GAAP basis, operating income was $312.5 million with non-GAAP diluted earnings per share of $1.45, up 16 percent year-over-year and $0.05 better than consensus estimates.

“Skyworks exceeded financial expectations in the second fiscal quarter of 2017 driven by insatiable demand for high-speed, reliable, always-on connectivity spanning Mobile and Internet of Things ecosystems,” said Liam K. Griffin, president and chief executive officer of Skyworks. “We are capitalizing on these powerful macrotrends, pushing the technology envelope and extending our product reach to enable the world’s most exciting communications platforms. At a higher level, we are well positioned to create shareholder value while executing on our ambitious vision of connecting everyone and everything, all the time.”

Here are the numbers:


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		775.1		751.7		835.4
2017				914.3		851.7

EPS (non-GAAP)		        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		1.25		1.24		1.47
2017				1.61		1.45

2017 Q2 Earnings (Current):

Revenue Growth (millions)
2016 Q2 TTM Revenue = 3392.7
2017 Q2 TTM Revenue = 3353.1
YOY TTM Revenue Growth = (1%), previous quarter (3%)

EPS Growth (non-GAAP)
2016 Q2 TTM Earnings = 5.71
2017 Q2 TTM Earnings = 5.77
YOY TTM EPS Growth = 1%, previous quarter (0.7%)

Non-GAAP P/E (Check Current Price) = 104.20/5.77 = 18.05

Guidance sounds good too for next quarter:

“Expanding content gains coupled with successful product ramps across a diverse customer set are enabling Skyworks to demonstrably outpace our addressable markets,” said Kris Sennesael, senior vice president and chief financial officer of Skyworks. “Specifically, for the third fiscal quarter of 2017, we anticipate revenue of $890 million and non-GAAP diluted earnings per share of $1.52, up 18 and 23 percent year-over-year, respectively.”

From http://investors.skyworksinc.com/releasedetail.cfm?ReleaseID…

Matt
Long SWKS
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23 Likes
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Thanks for the write up, Matt.

I especially liked the following as to what it means for the future (to me, at least):

Skyworks exceeded financial expectations in the second fiscal quarter of 2017 driven by insatiable demand for high-speed, reliable, always-on connectivity spanning Mobile and Internet of Things ecosystems

That demand is only going to increase, and I think increased growth is coming to this stock.

2 Likes
3

Looks exactly like what I expected. Good, not fantastic. I listened to the conference call live and the rest of this year sounds as if it may be improving. Again, right about the timeline I am expecting. I find it a bit odd that the price has dropped -3% after hours, that seems excessive penalty for good news! My best guess is this is a case of “good but not good enough” given the way the stock price has risen this past quarter.

1 Like
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My best guess is this is a case of “good but not good enough” given the way the stock price has risen this past quarter.

FWIW, that’s my take as well. We’ll see how it reacts tomorrow.

Matt
Long SWKS

5

Curious about SP reaction to results. Granted there was a very mild erosion of margin but I was satisfied (as were analysts) and impressed by the widening of the customer base. People seem confident about Apple too.