Skyworks Solutions Inc (SWKS) reported strong fourth-quarter fiscal 2014 results, driven by superior execution of operational plans. The company recorded net income of $174.9 million or 90 cents per share in the reported quarter, up from $84.2 million or 44 cents per share in the year-earlier quarter. The healthy year-over-year increase in earnings was primarily driven by higher revenues.
For fiscal 2014, company recorded net income of $457.7 million or $2.38 per share versus $278.1 million or $1.45 per share in the year-ago period.
Excluding non-recurring items, adjusted earnings for the reported quarter came in at $1.12 per share in the reported quarter versus 64 cents in the year-ago quarter. The recurring earnings (with stock-based compensation adjustments) of $1.00 per share beat the Zacks Consensus Estimate by a couple of cents.
Excluding non-recurring items, adjusted earnings for fiscal 2014 came in at $3.24 per share in the reported quarter, up 47% year over year. Adjusted earnings for fiscal 2014 comfortably beat the Zacks Consensus Estimate of $2.77.
Quarter Details
Skyworks reported revenues of $718.2 million in the reported quarter up 51.0% year over year. The reported revenues were ahead of the Zacks Consensus Estimate of $713 million. Skyworks continues to capitalize on the global mobile connectivity and demand for high-performance solutions across a diverse set of vertical markets and Internet of Things.
For fiscal 2014, revenue was $2,291.5 million, up 28.0% year over year. The reported revenues were ahead of the Zacks Consensus Estimate of $2,252 million.
Gross profit was $324.0 million in the reported quarter compared with $209.1 million in the year-ago period. Operating income improved to $198.1 million from $105.5 million in the prior year.
The company ended fiscal 2014 with cash and cash equivalents of $805.8 million vs. It declared a dividend of 13 cents per share, an 18% increase over the prior-quarter dividend. The dividend is payable on Dec 11, 2014 to stockholders of record at the close of business on Nov 18.
Outlook
Moving forward, Skyworks is well positioned to capitalize on the Internet of Things with a healthy demand for high-performance wireless solutions in new markets.
Based on broad customer demand and operational execution, the company expects $3 billion in revenues with non-GAAP earnings per share in the vicinity of $5.00. For first-quarter fiscal 2015, the company expects revenue to be up 52% year over year to $770 million. Margin expansion is expected to result in $1.18 of non-GAAP earnings per share.
The company believes that its strategy of diversifying its business and expanding into new verticals will drive growth in the long term. Leveraging on product innovation and broad-based customer demand, the company appears poised for sustainable above-market growth in the near term.
Skyworks currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look include Inphi Corporation (IPHI), NeoPhotonics Corporation (NPTN) and TriQuint Semiconductor, Inc. (TQNT), each carrying a Zacks Rank #2 (Buy).
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