Bad news first. SWKS was downgraded today by analysts at Pacific Crest over concerns about the upcoming iPhone 7 shipments. From Foolish contributor Rich Smith:
Sales of Apple’s (NASDAQ:AAPL) iPhone are in trouble – and that could spell bigger trouble for Apple’s suppliers.
That’s the upshot of a new report out of tech analysts at Pacific Crest this morning, as they take a shotgun to the iPhone supply stream, downgrading stocks and slashing price targets across the board. As reported on StreetInsider.com Monday, Pacific Crest’s “quarterly Asia supply chain findings left us incrementally more positive on” only a handful of smartphone component suppliers – and very negative on the supply chain at large.
Suffering the brunt of Pacific Crest’s criticism this morning are Cirrus Logic and Skyworks Solutions. Cirrus supplies audio integrated circuits on the iPhone 6S. Skyworks supplies at least two power amplifiers for the device. Both stocks got their ratings cut from overweight to sector weight – the equivalent of a cut from buy to hold.
Smith does note that Skyworks is better positioned from a P/E standpoint than Cirrus:
Skyworks Solutions, on the other hand, costs only 12.2 times earnings, and is pegged for 17% growth. That suggests that even if Pacific Crest is right about iPhone sales turning down, Skyworks stock is more defensively priced. (There is, however, some concern to be found on the stock’s cash flow statement. According to data from S&P Global Market Intelligence, Skyworks Solutions generated less than $0.58 in real free cash flow for every $1 in claimed “net earnings” over the past 12 months. Cheap as the stock may appear on the surface, it may not be quite as cheap as it looks.)
Read the whole thing at http://www.fool.com/investing/2016/07/05/cirrus-logic-and-sk…
On a much more positive note, Huawei’s newest flagship phone is loaded with Skyworks products:
Huawei’s newest flagship P9 and P9 Plus smartphones are being enabled by a broad suite of devices from Skyworks. The devices include highly integrated modules to industry-leading analog control ICs. Specifically, Huawei’s latest mobile platforms are utilizing the low, mid, and high band architectures of the SkyOne Ultra 2.0 featuring integrated filters and SkyBlue technology, antenna tuners, power management devices and multi-throw switches. Their products address LTE advanced carrier aggregation standards and support up to nine global combinations, including the two most challenging mid-band/mid-band cases.
Read the entire article at http://www.everythingrf.com/News/details/2680-huawei%E2%80%9…
Click on the link and see the diagram pointing out all of the Skyworks components in the phone to get a true idea of how much Skyworks is represented.
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