Skyworks Stock Is Soaring After Earnings. It’s Probably Thanks to Apple.

Skyworks Stock Is Soaring After Earnings. It's Probably Thanks to Apple.

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Apple has consistently been Skyworks’ largest customer by a wide margin.


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Shares of

Skyworks Solutions

were soaring in late trading Thursday after the supplier of radio chips for mobile phone manufacturers reported financial results that were well ahead of guidance for both sales and profits. 

For the quarter, Skyworks (ticker: SWKS) posted revenue of $1.51 billion, up 58% from a year earlier, and ahead of the company’s guidance range of $1.04 billion to $1.07 billion. Street consensus was $1.06 billion. Non-GAAP profits in the quarter were $3.36 a share, far ahead of both the company’s forecast of $2.06 a share and the Street consensus at $2.08. GAAP, or generally accepted accounting principles, profits were $3.05 a share, up from $1.50 a year ago.

The company expects the good times to continue in the March quarter. Skyworks projects revenues of between $1.125 billion and $1.175 billion, with non-GAAP profits of $2.34 a share at the middle of the revenue range. That’s again well above the Street’s forecast, which had been projecting $915 million in revenue and $1.70 a share in non-GAAP profits.

The impressive quarter comes just one day after a strong December quarter earnings performance from

Apple

(AAPL), which has consistently been the company’s largest customer by a wide margin. Apple accounted for 56% of the company’s revenues in the September 2020 fiscal year, previous Skyworks financial filings show. The company did not specifically disclose its Apple exposure for the quarter in the release, but it is an obvious conclusion that the company got a boost from the strong sales of the new Apple iPhone 12 line.

“Skyworks delivered record quarterly results, leveraging our expansive technology reach,” CEO
Liam K. Griffin
said.. “Demand for our proven solutions continues to accelerate across a growing set of customers and end markets, powering the world’s most impactful use cases, from 5G mobile platforms to IoT, wireless infrastructure, autonomous transport and machine-to-machine installations.” 

The company also announced a new $2 billion stock repurchase program.

Skyworks in late trading as spiked 12.3%, to $179.50.

Write to Eric J. Savitz at [email protected]

This article is auto-generated by Algorithm Source: www.barrons.com

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