Skyworks misses estimates – hurt by Huawei ban
Semiconductor maker Skyworks Solutions reported earnings last week that failed to live up to analysts’ estimates after trade difficulties between the US and China hit its business. Skyworks produces a huge number of chips for the smartphone market, and President Trump’s ban on Chinese giant Huawei has hit its business hard. Despite this miss, Skyworks’ share price remains up by double-digits over the year so far, and Liam K. Griffin, CEO and president, was quick to praise the company’s “robust” performance under difficult conditions.
Skyworks’ share price has risen by 15% so far this year
Source: Yahoo Finance
Adjusted earnings for the third quarter fell to $1.35 per share – down from $1.64 per share a year earlier. Revenue also took a hit, declining by 14% year on year to $767 million. Both of these figures fell short of the Street’s predictions.
In a statement, Griffin took the opportunity to reiterate the business’s long-term story. He said: “The core fundamentals of our business remain strong despite current market volatility. Demand for advanced connectivity and the expansive nature of 5G are creating real-time opportunities for architectures that facilitate high-speed data, near-zero latency and exceptional reliability. As a proven technology leader, we are leveraging our Sky5® platform and systems expertise to enable billions of connections across a vast set of diverse end markets, providing the foundation for an entirely new ecosystem in today’s connected world.”
Kris Sennesael, the company’s senior vice president and chief financial officer, added: ““Skyworks is on track to deliver sequential revenue and earnings growth in the September quarter as we execute on strategic product ramps.”
Dominion holds Skyworks Solutions in its Global Trends Managed Fund.
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