Skyworks beats the Street – despite weak iPhone demand
Skyworks Solutions Inc. posted strong earnings results for its latest quarter, beating the Street’s predictions on earnings and revenue. This outperformance is particularly notable given the impact analysts were expecting to see from weak iPhone demand during the quarter – as a result, predictions had trended down during the quarter. Investors liked what they saw, and the company’s share price has been rising as a result.
Skyworks’ share price has risen by 6% in the last 5 days
Source: Yahoo Finance
Skyworks posted adjusted earnings of $1.64 per share for the quarter. This is a clear beat against analysts’ expectations of $1.60 per share, and a 13% increase against the same period in the previous year.
Revenue also rose against the second quarter of 2017 by 7% to 913.4 million. Again, this beats the Street’s estimate of $910.4 million. The company revealed that operating income rose by 13% year on year to $331.1 million, and that Skyworks generated “$434.2 million in cash flow from operations.” Taken together, these figures represent a strong underlying business.
Skyworks is an American semiconductor company, and supplies a number of industries. But analysts worried that its connection to the fortunes of the iPhone could hold it back – a strong second quarter to the year goes some way to dispelling that myth.
The company’s chief financial officer, Kris Sennesael, spoke directly to this concern, saying: “Strong growth in our broad market portfolio is mitigating the near term softness at leading smartphone customers and the trade restrictions imposed by the U.S. government on a Chinese OEM.”
Dominion holds Skyworks Solutions in its Global Trends Ecommerce Fund.
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