Skyworks Solutions delivered impressive 4Q results as earnings of $1.85 crushed analysts’ estimates of $1.52 and rose about 21.7% year-over-year. The semiconductor company’s revenues of $956.8 million jumped 15.6% year-over-year and came ahead of the Street consensus of $842.4 million.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Skyworks’ (SWKS) CEO Liam K. Griffin said “With 5G technology launches now well under way, we are ramping our innovative Sky5 solutions in a rapidly expanding set of end markets, from mobile to IoT, automotive and wireless infrastructure.” He added that “Increased demand for reliable, ultra-fast wireless connections in our homes, businesses, schools and medical facilities is driving strong momentum throughout our product portfolio, positioning Skyworks for continued growth.”
For the December-ending quarter (1Q 2021), Skyworks anticipates revenue in the range of $1.04 billion – $1.07 billion, higher than the consensus estimate of $935.4 million. The company expects 1Q earnings to be $2.06 per share, compared with the $1.80 per share anticipated by analysts . Skyworks’ CFO Kris Sennesael said “We expect double-digit sequential revenue and earnings growth in the December quarter, fueled by content gains and product ramps across multiple 5G-enabled smartphone platforms and increased demand across our broad markets portfolio.”
As for fiscal 2021, Skyworks Solutions foresees better-than-expected earnings of $6.13, compared with the consensus estimate of $5.81. FY2021 revenue is expected to land $3.356 billion, versus analysts’ estimates of $3.25 billion. (See SWKS stock analysis on TipRanks).
Following the results, Mizuho Securities analyst Vijay Rakesh raised the price target to $174 (22.4% upside potential) from $170 and maintained a Buy rating on SWKS stock. The analyst said that “SWKS continues to gain 5G handset traction, and is supply-constrained through December, along with seeing higher-margin Broad Markets strength in IoT [Internet of Things] and Automotive.”
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 8 Buys and 2 Holds. The average price target of $163.67 implies upside potential of about 15.2% to current levels. Shares are up by 17.6% year-to-date.
Related News:
Magellan Tops 3Q Profit As Refined Products Demand Improves
Twitter’s Ad Revenues Drive 3Q Sales Beat
Clorox Hikes 2021 Guidance Due To Cleaning Bonanza; Shares Rise 4%