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Skyworks (SWKS) Q2 Earnings: What's in Store this Time?
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Skyworks Solutions Inc. (SWKS - Free Report) is set to release second-quarter fiscal 2017 earnings on Apr 27. Notably, the company has positive record of earnings surprises in the trailing four quarters, with an average surprise of 2.65%.
In the preceding quarter, the company reported a positive earnings surprise of 4.05%. Non-GAAP earnings of $1.61 per share increased 0.6% from the year-ago quarter and 9.5% on a sequential basis. Further, the figure beat management’s guidance by 3 cents.
Revenues of $914.3 million were down 1.3% year over year but increased 9.4% sequentially and were ahead of management guidance (up 7–9% sequentially) and Zacks Consensus Estimate of $902 million.
Skyworks quarterly guidance reflected seasonal weakness. Revenues were expected to be up 8% year over year but went down almost by the same magnitude on a sequential basis to $840 million. Moreover, non-GAAP earnings were anticipated to be $1.40 per share, up 12% from the year-ago quarter.
Let’s see how things are shaping up for this announcement.
Factors to Consider
We note that the earnings beat along with better-than-expected projections drove share price momentum in recent times. Skyworks shares have returned 36.1% much better than the Zacks Semiconductors Radio Frequency industry’s gain of 31.4% on a year-to-date basis.
Skyworks is well positioned to capitalize on the Internet of Things (IoT) with healthy demand for high-performance wireless solutions in new markets. The company continues with its strategy of providing custom integrated solutions and diversifying business into high-margin verticals.
Leveraging on product innovation and broad-based customer demand, the company appears poised for sustainable above-market growth in the near term.
We expect the company to gain further traction in the wireless devices space and maintain strong presence with the smartphone original equipment manufacturers (OEMs). In February, the company launched its newest SkyOne front-end solution targeting the high growth China LTE market.
Moreover, we believe that pent-up demand for recently launched Samsung Galaxy 8 bodes well for Skyworks. The company is also anticipated to gain from strong demand for Apple’s (AAPL - Free Report) upcoming iPhone 8.
Earnings Whispers
Our proven model does not conclusively show that Skyworks is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Skyworks’ Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.30 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Skyworks carries a Zacks Rank #2, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that, as per our model, that have the right combination of elements to post an earnings beat this quarter:
Square (SQ - Free Report) , flaunts a Zacks Rank #1 and has an Earnings ESP of +12.50%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Skyworks (SWKS) Q2 Earnings: What's in Store this Time?
Skyworks Solutions Inc. (SWKS - Free Report) is set to release second-quarter fiscal 2017 earnings on Apr 27. Notably, the company has positive record of earnings surprises in the trailing four quarters, with an average surprise of 2.65%.
In the preceding quarter, the company reported a positive earnings surprise of 4.05%. Non-GAAP earnings of $1.61 per share increased 0.6% from the year-ago quarter and 9.5% on a sequential basis. Further, the figure beat management’s guidance by 3 cents.
Revenues of $914.3 million were down 1.3% year over year but increased 9.4% sequentially and were ahead of management guidance (up 7–9% sequentially) and Zacks Consensus Estimate of $902 million.
Skyworks quarterly guidance reflected seasonal weakness. Revenues were expected to be up 8% year over year but went down almost by the same magnitude on a sequential basis to $840 million. Moreover, non-GAAP earnings were anticipated to be $1.40 per share, up 12% from the year-ago quarter.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. Price and EPS Surprise | Skyworks Solutions, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
We note that the earnings beat along with better-than-expected projections drove share price momentum in recent times. Skyworks shares have returned 36.1% much better than the Zacks Semiconductors Radio Frequency industry’s gain of 31.4% on a year-to-date basis.
Skyworks is well positioned to capitalize on the Internet of Things (IoT) with healthy demand for high-performance wireless solutions in new markets. The company continues with its strategy of providing custom integrated solutions and diversifying business into high-margin verticals.
Leveraging on product innovation and broad-based customer demand, the company appears poised for sustainable above-market growth in the near term.
We expect the company to gain further traction in the wireless devices space and maintain strong presence with the smartphone original equipment manufacturers (OEMs). In February, the company launched its newest SkyOne front-end solution targeting the high growth China LTE market.
Moreover, we believe that pent-up demand for recently launched Samsung Galaxy 8 bodes well for Skyworks. The company is also anticipated to gain from strong demand for Apple’s (AAPL - Free Report) upcoming iPhone 8.
Earnings Whispers
Our proven model does not conclusively show that Skyworks is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Skyworks’ Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.30 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Skyworks carries a Zacks Rank #2, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies that, as per our model, that have the right combination of elements to post an earnings beat this quarter:
Western Digital (WDC - Free Report) has an Earnings ESP of +2.16%. It sports a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
Square (SQ - Free Report) , flaunts a Zacks Rank #1 and has an Earnings ESP of +12.50%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>