Skyworks beats the Street, ups dividend
Skyworks Solutions, a maker of wireless internet chips that’s leading the charge towards widespread connectivity and the Internet of Things (IoT), has reported third-quarter earnings that give investors a lot to be pleased about. The company beat the Street on earnings and revenue, raised its dividend, and reiterated its position as a market leader in the space.
Skyworks’ share price is up by 6% over the past 3 months
SOURCE: Yahoo Finance
Skyworks said that revenue came in at $894.3 million – a clear beat against the $889 million that analysts had been expecting. Likewise, earnings per share stood at $1.64, overshooting predictions of $1.60. In light of these results, Skyworks said it was raising its quarterly dividend by 19%.
According to the company’s CEO, Liam Griffin, the better-than-expected results were due to “our broadening market reach, solid execution and resilient business model.” He added that Skyworks is "gaining first-mover advantage across Internet of Things and rapidly emerging 5G applications with our Sky5 platform. Leveraging our scale and decades of system-level expertise, we are positioned to capitalize on increasing demand for powerful and complex connectivity engines as the global data economy accelerates.”
For the current quarter, Skyworks sees its revenue increasing by between 11% and 13%, which is broadly in line with analysts’ expectations ($1.001 billion). Offering a little insight into this forecast, Skyworks’ chief financial officer, Kris Sennesael said that it included "design win momentum transitioning to volume production."
He also elaborated: "at the $1 billion midpoint of this revenue range, we anticipate continued margin expansion and 16 percent sequential growth in non-GAAP diluted earnings per share to $1.91."
Dominion holds Skyworks Solutions in its Global Trends Ecommerce Fund.
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