Skyworks Solutions Beats Estimates Yet Again

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Skyworks Solutions (NAS: SWKS) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Skyworks Solutions beat slightly on revenue and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share dropped.

Margins dropped across the board.

Revenue details
Skyworks Solutions reported revenue of $394 million. The 17 analysts polled by S&P Capital IQ hoped for revenue of $390 million. Sales were 17% higher than the prior-year quarter's $335 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.51. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.50 per share on the same basis. GAAP EPS of $0.30 for Q1 were 6.3% lower than the prior-year quarter's $0.32 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.6%, 70 basis points worse than the prior-year quarter. Operating margin was 19.2%, 390 basis points worse than the prior-year quarter. Net margin was 14.5%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $349 million. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $1.5 billion. The average EPS estimate is $1.88.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 625 members out of 660 rating the stock outperform, and 35 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Skyworks Solutions a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skyworks Solutions is outperform, with an average price target of $27.63.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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