Swks

Investment Analysis Clubs Saul’s Investing Discussions
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Looks like Skyworks is finally turning it around. Their next quarter should be an easy beat. Here is the rest of the story.

First “Skyworks delivered exceptional financial results in the first fiscal quarter of 2017 fueled by global demand for ubiquitous mobile connectivity and the Internet (HHH) of Things,” said Liam K. Griffin, president and chief executive officer of Skyworks. “We are enabling the next phase of the wireless revolution, powering new and previously unimagined applications. With the proliferation of 4G/LTE and advent of 5G, system-level performance requirements are intensifying, driving the need for substantially higher data rates, improved efficiency and reduced latency across an exponentially growing scope of networked devices. Leveraging our innovative portfolio, carrier aggregation leadership, operational scale and demonstrated ability to deliver highly integrated solutions, Skyworks is uniquely positioned to capitalize on this connectivity megatrend.”

And

“Given our expanding product pipeline and accelerating design win momentum, we expect to outperform industry seasonality in the March quarter,” said Kris Sennesael, senior vice president and chief financial officer of Skyworks. “Specifically, for the second fiscal quarter of 2017, we anticipate revenue of $840 million, up 8 percent year-over-year, with non-GAAP diluted earnings per share of $1.40. Further, given the confidence in our business model and plans to enhance cash returns to our shareholders, today we are separately announcing that our Board of Directors has authorized a new $500 million stock repurchase program.”

Read the rest here:

http://seekingalpha.com/pr/16718725-skyworks-exceeds-q1-fy17…

Andy

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It was a very good quarter, much better than Wall St. expected.

Shares of Skyworks Solutions, Inc. climbed in after-market trading Thursday after the Apple Inc. chip supplier posted better-than-expected quarterly results while also unveiling a $500 million stock-repurchase program.

For the first quarter, the supplier beat its guidance for adjusted profit on a per share basis by 3 cents, while revenue also exceeded expectations.

Liam K. Griffin, the company’s chief executive officer, said results were driven by “global demand for ubiquitous mobile connectivity and the Internet of Things.”

Read more at http://www.marketwatch.com/story/skyworks-shares-up-on-earni…

Here is a look at some of the updated 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

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

2017 Q1 Earnings (Current):

Revenue Growth (millions)
2016 Q1 TTM Revenue = 3379.7
2017 Q1 TTM Revenue = 3276.5
Year Over Year Revenue Growth = (3%), previous quarter 1%

EPS Growth (non-GAAP)
2016 Q1 TTM Earnings = 5.61
2017 Q1 TTM Earnings = 5.57
Year Over Year EPS Growth = (0.7%), previous quarter 5.5%

P/E (Check Current Price) = 78.46/5.57 = 14.1

The TTM numbers hide the strength of the recent quarter. Last year’s first quarter was a very, very tough comp and the company almost matched it. The next two quarters, by comparison, are easy comps providing good opportunities for growth.

That’s to say nothing of the buyback, possible big Apple 8 release later this year, etc. Stock price was up about 6% in AH trading. Of course, we’ll have to see if that holds tomorrow, but I like where I think this stock is going in 2017.

Matt
Long SWKS
MasterCard (MA), Nestle (NSRGY), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx

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Nice Matt,
If anyone is interested, here is a link to Neil’s 1ypeg.com site. It is easy to keep track of companies and gives a nice visual to go along with the numbers.

http://www.1ypeg.com/SWKS

Andy
Thanks Neil for the site.

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and here is what Cramer said…

“There is now enough business involving mobile connectivity away from Apple and enough of a roadmap of the future toward 5G … that you can see why the stock soared,” the “Mad Money” host said.

It was music to analysts’ ears when Skyworks management called the quarter “growth and success outside our largest customer,” and confirmed inventories are lean.

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