We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Skyworks (SWKS) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Skyworks Solutions, Inc. (SWKS - Free Report) is scheduled to report first-quarter fiscal 2021 results on Jan 28.
For fiscal first quarter, Skyworks expects revenues in the range of $1.04-$1.07 billion. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.06 billion, which indicates an improvement of 18.5% from the year-ago quarter.
Management expects non-GAAP earnings to be $2.06 per share at the mid-point of the revenue range. The consensus mark for earnings has increased by a cent in the past seven days to $2.08 per share, which suggests growth of 23.8% from prior-year quarter.
Factors to Note
Increasing demand for 5G handsets, especially in China, is anticipated to have driven the company’s performance in the quarter to be reported. Moreover, newly released 3GPP standards have validated the extension of 5G technology into Internet of Things (IoT), Vehicle-to-everything (V2X) and other services. This is likely to have stoked demand for Skyworks’ 5G solutions in the quarter under review.
Momentum in deal wins from various customers across industrial IoT, automotive, aerospace and defense verticals is anticipated to have continued in the fiscal first quarter.
Moreover, continued momentum seen in Skyworks’ 5G and Wi-Fi 6 solutions is likely to have driven top-line growth in the to-be-reported quarter. Demand continues to be high owing to increased need for high-speed connectivity amid the COVID-19 induced surge in the remote work, video streaming and web-based learning trends.
In fiscal fourth-quarter conference call, management noted that 5G-enabled smartphones now constituted 12% of the total smartphones worldwide. Globally, 38 countries have already launched 5G networks and more are likely to follow the suit in the coming days. This, in turn, is expected to boost the top line in the to-be-reported quarter.
In fact, Skyworks also rolled out 802.11ax Wi-Fi solutions for Amazon’s (AMZN - Free Report) eero's access points.
Moving ahead, the significant traction witnessed for Sky5 platform that is powering smartphone launches at China-based OEMs like Oppo, Xiaomi and Vivo as well as Korea-based player Samsung, is expected to have contributed to fiscal first-quarter revenues.
Markedly, Skyworks also facilitates the touch-free point-of-sale systems at Square. Moreover, the company’s solutions support Facebook’s Oculus AR/VR devices.
Further, projected momentum in new iPhone sales might have positively impacted revenue numbers in the quarter under review. Notably, Skyworks supplies radio frequency chips to Apple and derives a significant portion of its revenues from the company.
Growing momentum for Skyworks’ bulk acoustic wave (BAW) filters, especially in mobile and broad markets, is likely to have driven fiscal first-quarter top line. The company has been witnessing significant design wins for BAW-enabled devices.
Nonetheless, increasing expenses on product enhancements amid stiff competition from Qorvo (QRVO - Free Report) and Broadcom in the radio frequency semiconductor market is anticipated to have limited margin expansion in the fiscal first quarter.
What Our Model Says
Our proven model predicts an earnings beat for Skyworks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Skyworks has a Zacks Rank #2 and an Earnings ESP of 1.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are other stocks which you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time around:
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.42% and currently carries a Zacks Rank of 2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Skyworks (SWKS) to Report Q1 Earnings: What's in the Cards?
Skyworks Solutions, Inc. (SWKS - Free Report) is scheduled to report first-quarter fiscal 2021 results on Jan 28.
For fiscal first quarter, Skyworks expects revenues in the range of $1.04-$1.07 billion. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.06 billion, which indicates an improvement of 18.5% from the year-ago quarter.
Management expects non-GAAP earnings to be $2.06 per share at the mid-point of the revenue range. The consensus mark for earnings has increased by a cent in the past seven days to $2.08 per share, which suggests growth of 23.8% from prior-year quarter.
Factors to Note
Increasing demand for 5G handsets, especially in China, is anticipated to have driven the company’s performance in the quarter to be reported. Moreover, newly released 3GPP standards have validated the extension of 5G technology into Internet of Things (IoT), Vehicle-to-everything (V2X) and other services. This is likely to have stoked demand for Skyworks’ 5G solutions in the quarter under review.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Momentum in deal wins from various customers across industrial IoT, automotive, aerospace and defense verticals is anticipated to have continued in the fiscal first quarter.
Moreover, continued momentum seen in Skyworks’ 5G and Wi-Fi 6 solutions is likely to have driven top-line growth in the to-be-reported quarter. Demand continues to be high owing to increased need for high-speed connectivity amid the COVID-19 induced surge in the remote work, video streaming and web-based learning trends.
In fiscal fourth-quarter conference call, management noted that 5G-enabled smartphones now constituted 12% of the total smartphones worldwide. Globally, 38 countries have already launched 5G networks and more are likely to follow the suit in the coming days. This, in turn, is expected to boost the top line in the to-be-reported quarter.
In fact, Skyworks also rolled out 802.11ax Wi-Fi solutions for Amazon’s (AMZN - Free Report) eero's access points.
Moving ahead, the significant traction witnessed for Sky5 platform that is powering smartphone launches at China-based OEMs like Oppo, Xiaomi and Vivo as well as Korea-based player Samsung, is expected to have contributed to fiscal first-quarter revenues.
Markedly, Skyworks also facilitates the touch-free point-of-sale systems at Square. Moreover, the company’s solutions support Facebook’s Oculus AR/VR devices.
Further, projected momentum in new iPhone sales might have positively impacted revenue numbers in the quarter under review. Notably, Skyworks supplies radio frequency chips to Apple and derives a significant portion of its revenues from the company.
Growing momentum for Skyworks’ bulk acoustic wave (BAW) filters, especially in mobile and broad markets, is likely to have driven fiscal first-quarter top line. The company has been witnessing significant design wins for BAW-enabled devices.
Nonetheless, increasing expenses on product enhancements amid stiff competition from Qorvo (QRVO - Free Report) and Broadcom in the radio frequency semiconductor market is anticipated to have limited margin expansion in the fiscal first quarter.
What Our Model Says
Our proven model predicts an earnings beat for Skyworks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Skyworks has a Zacks Rank #2 and an Earnings ESP of 1.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are other stocks which you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time around:
Qorvo has an Earnings ESP of +0.78% and holds a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.42% and currently carries a Zacks Rank of 2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>