Analog semiconductor manufacturer Skyworks Solutions Inc. (SWKS) recently revised its earnings and revenue guidance upward for the fourth quarter of fiscal 2014. The strategic move was aimed to better reflect the market conditions and its capability to fully capitalize on the positive underlying market trends.
Skyworks presently expects fourth-quarter revenues to grow 51% on a year-over-year basis and 22% sequentially to $718 million. Recurring earnings for the quarter are anticipated to be $1.08 per share, reflecting a 69% year-over-year increase and 30% sequential growth.
Earlier, in concurrence with the third-quarter results, Skyworks provided its initial outlook for the fourth quarter. The guided revenue tally was $680 million, up 43% year over year. Adjusted earnings per share were expected to increase 56% year over year to $1.00.
The upward revision in the quarterly outlook was primarily attributable to healthy market fundamentals and inherent strength of the company to fully exploit the market conditions. Skyworks is well positioned to capitalize on the Internet of Things with a healthy demand for high-performance wireless solutions in new markets.
The company believes that its strategy of diversifying its business and expanding into new verticals will drive growth in the long term. Based on its product innovation and broad customer demand, Skyworks is well poised for sustainable above-market growth in the near term.
Headquartered in Woburn, MS, Skyworks designs, manufactures and markets a broad range of high performance analog and mixed signal semiconductors that enable wireless connectivity. The company’s products include power amplifiers (PAs), front-end modules (FEMs), radio frequency (RF) sub-systems and cellular systems. Leveraging its core analog technologies, the company also offers a diverse portfolio of linear integrated circuits (ICs) that support automotive, broadband, cellular infrastructure, industrial and medical applications.
Skyworks currently has a Zacks Rank #2 (Buy). Other stocks that look promising in the industry include Ambarella, Inc. (AMBA), Avago Technologies Limited (AVGO) and Rambus Inc. (RMBS), each carrying a Zacks Rank #1 (Strong Buy).
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