I continue to love the positioning of names in this sector as true secular growth stories - they are in the middle of all the action with mobile internet and increasingly the smart grid.
A quick look at the earnings and guidance below, please keep in mind Skyworks - like TriQuint - increased guidance mid quarter so this is a beat versus a raised expectation. Looks like analysts have moved up consensus from $1.02 to $1.14 for 2010, not a bad value for a $17 stock.
- Cellphone chipmaker Skyworks Solutions Inc's (SWKS) second-quarter results edged past market expectations, helped by expanding opportunities in smartphone, broadband access and smart grid applications, and the forecast a strong third quarter.
- The company expects third-quarter earnings of 30 cents per share, excluding special items, on revenue that is 10 percent to 15 percent higher on a sequential basis. Analysts were looking for third-quarter earnings of 25 cents a share, before special items, on revenue $243.9 million.
- For the second quarter ended April 2, Skyworks earned $27.7 million, or 15 cents a share, compared with a loss of $5.7 million, or 3 cents a share, a year ago. Excluding items, the company earned 24 cents a share, narrowly beating analysts' expectations of 23 cents a share.
- Revenue rose 38 percent to $238.1 million, ahead of analysts' estimate of $232.2 million.
- "We believe Skyworks remains one of the best positioned players in the handset front-end semiconductor market and regard current valuation levels as attractive," Kaufman Bros analyst Suji De Silva wrote in a note. "Skyworks also continues to see strong growth outside its core handset market from wireless infrastructure and energy meter reading content," said the analyst, who raised his price target on the stock to $20 from $18.
- "We believe the company could exceed its 25 percent operating margin in the near to medium term," Svanberg said. For the second quarter ended April 2, Skyworks posted an adjusted operating margin of 20.5 percent.