We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Skyworks, Apple, Qorvo, Jabil and Synaptics
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 3, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Skyworks Solutions, Inc. (SWKS - Free Report) , Apple Inc. (AAPL - Free Report) , Qorvo, Inc. (QRVO - Free Report) , Jabil Inc. (JBL - Free Report) and Synaptics Incorporated (SYNA - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Skyworks (SWKS - Free Report) & 3 Other Suppliers to Tap Uptick in iPhone Sales
Skyworks Solutions recently reported stellar first-quarter fiscal 2021 results, wherein non-GAAP earnings of $3.36 per share beat the Zacks Consensus Estimate by 61.54% and surged 100% year over year.
Further, revenues of $1.51 billion surpassed the Zacks Consensus Estimate by 42.2%. Notably, the top line improved 69% on a year-over-year basis.
Skyworks stock is up more than 16% following the impressive results on Jan 28, courtesy of rapid deployment of 5G, which boosted demand for its mobile solutions. Moreover, investors’ optimism in encouraging guidance for second-quarter fiscal 2021 has fueled the upside.
It is worth mentioning that Skyworks, which presently carries a Zacks Rank #2 (Buy), is a prominent provider of radio frequency chips to Apple. Hence, the company is currently benefiting from strong iPhone sales courtesy of strong demand for iPhone 12 devices.
Strong iPhone Sales Projection to Boost Supplier Stocks
Apple’s near-term prospects are bright, driven by new iPhones that support 5G. Significant increase in iPhone sales across China and Japan remains noteworthy.
Per a Nikkei Asia report on Dec 15, 2020, Apple, currently sporting a Zacks Rank #1 (Strong Buy), is planning to increase production of iPhones in the first half of 2021 courtesy of strong demand for its 5G-enabled iPhone 12, and older iPhone 11 and iPhone SE. The Cupertino-based company expects to ship 95-96 million iPhones, indicating an increase of roughly 30% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the December-ended quarter, iPhone sales improved 17.2% from the year-ago quarter to $65.59 billion and accounted for 58.9% of total sales. The robust year-over-year growth was driven by strong demand for the iPhone 12 family.
Markedly, iPhone’s active installed base is now more than 1 billion. Apple quoted a recent survey report from 451 Research, which stated that customer satisfaction was 98% for the iPhone 12 family in first-quarter fiscal 2021.
Increasing penetration of 5G smartphones is also expected to be a tailwind for Apple’s component supplier companies. Notably, per a report by TrendForce, the penetration rate of 5G smartphones is expected to increase to 37% in 2021, following the 19% penetration rate in 2020.
Remarkably, even minimal changes in demand of iPhone-related devices create a stir among Apple’s supplier base. In this context, investors’ optimism is likely to get a boost with regard to these suppliers, which depend on the iPhone maker for significant portions of their total revenues.
Apple contributed 56% of Skyworks’ revenues in fiscal 2020. The chipmaker’s top-line growth is significantly dependent on the iPhone's growth trajectory.
Evidently, Skyworks expects second-quarter fiscal 2021 revenues in the range of $1.125 billion to $1.175 billion, representing revenue growth of 50% at the mid-point. The Zacks Consensus Estimate for revenues currently stands at $1.15 billion.
Non-GAAP earnings are anticipated to be $2.34 per share at the mid-point of the revenue range, representing growth of 75% year over year. The Zacks Consensus Estimate for earnings has been revised upward by 8.2% in the past seven days to $1.84, reflecting bullish sentiments.
Apart from strength in the 5G amplifier portfolio, Skyworks’ diversified offerings position it well to capitalize on momentum witnessed across medical end-markets.
The company also announced a new $2 billion stock repurchase program, which augurs well for bottom-line growth.
Notably, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 8.4% to $8.17 per share over the past seven days.
3 Other Suppliers Poised to Gain on Uptick in iPhone Sales
Skyworks’ peer in semiconductor radio-frequency market, Qorvo is anticipated to benefit from the uptick in iPhone sales as well. Apple accounted for 33% of the company’s total revenues in fiscal 2020. The company currently carries a Zacks Rank #2.
The company expects third-quarter fiscal 2021 revenues to be $1.06 billion (+/-$15 million). The consensus mark for revenues is pegged at $1.07 billion, which suggests an improvement of 22.75% from the year-ago quarter’s reported figure.
Non-GAAP adjusted earnings are anticipated to be $2.65 per share at mid-point for the fiscal third quarter. The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.67 per share, which increased by one cent in the past seven days. The figure indicates an improvement of 43.55% from the year-ago quarter’s reported figure.
Strength in smartphone vertical, upgrades in 5G smartphones, and gains from consistent growth in 5G infrastructure, power management, 5G base stations, Wi-Fi 6 solutions and defense end-markets are anticipated to have driven performance in third-quarter fiscal 2021. (Read More: Will 5G Content Expansion Drive Qorvo's Q3 Earnings?)
Further, solid uptake of Bulk Acoustic Wave (BAW) filters, with the reopening of economies, is expected to boost top-line growth. Moreover, expanding the portfolio of 5G base solutions amid accelerated deployment of 5G bodes well for the longer haul.
Notably, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 3 cents to $8.70 per share over the past seven days.
Further, Jabil, which is involved in supplying casings for iPhones and iPads, is expected to gain from solid uptick in iPhone sales. In fiscal 2020, Apple accounted for 20% of this Zacks Rank #2 company’s revenues.
In the November-ended quarter, its Diversified Manufacturing Services (DMS) revenues contributed 54% to total revenues and improved 13% year over year to $4.23 billion. For second-quarter fiscal 2021, Jabil expects total revenues between $6.2 billion and $6.8 billion. The Zacks Consensus Estimate is currently pegged at $6.50 billion.
DMS revenues are forecast to be $3.5 billion, which suggests an improvement of 22% year over year. The company’s core earnings are expected between 83 cents and $1.03 per share on a non-GAAP basis.
The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised upward by 9.2% to 95 cents in the past 60 days.
Additionally, investors’ confidence in the company’s notable contract wins in healthcare, automotive, cloud and 5G verticals hold promise.
Notably, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 14.6% to $4.63 per share over the past 60 days.
Moreover, Synaptics’ near-term top-line performance is likely to reflect gains from improving iPhone 12 demand. The company, currently carrying a Zacks Rank #2, is a display component supplier of Apple, which puts it in this list.
Notably, the company’s second-quarter fiscal 2021 performance is likely to have benefited from a healthy backlog of $314 million, as noted by management in its last earnings call. Apart from solid bookings, a growing customer base, rebound in smartphone market, robust growth in IoT space, and healthy product sell-in and sell-through patterns are expected to have acted as key catalysts.
The new design momentum with its OLED touch sensors is also likely to have benefited the top line during the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised upward by 2 cents to $2.16 in the past 30 days.
The company is well-poised to capitalize on its market-leading position for both touchpads and secure fingerprint sensors amid upbeat trends in PC shipments. Moreover, the company’s digital audio solutions are witnessing strong demand with premium headsets that primarily serve enterprise customers.
The consensus mark for the company’s fiscal 2021 earnings has been revised upward by 1.2% in the past 30 days to $6.94 per share.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Skyworks, Apple, Qorvo, Jabil and Synaptics
For Immediate Release
Chicago, IL – February 3, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Skyworks Solutions, Inc. (SWKS - Free Report) , Apple Inc. (AAPL - Free Report) , Qorvo, Inc. (QRVO - Free Report) , Jabil Inc. (JBL - Free Report) and Synaptics Incorporated (SYNA - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Skyworks (SWKS - Free Report) & 3 Other Suppliers to Tap Uptick in iPhone Sales
Skyworks Solutions recently reported stellar first-quarter fiscal 2021 results, wherein non-GAAP earnings of $3.36 per share beat the Zacks Consensus Estimate by 61.54% and surged 100% year over year.
Further, revenues of $1.51 billion surpassed the Zacks Consensus Estimate by 42.2%. Notably, the top line improved 69% on a year-over-year basis.
Skyworks stock is up more than 16% following the impressive results on Jan 28, courtesy of rapid deployment of 5G, which boosted demand for its mobile solutions. Moreover, investors’ optimism in encouraging guidance for second-quarter fiscal 2021 has fueled the upside.
It is worth mentioning that Skyworks, which presently carries a Zacks Rank #2 (Buy), is a prominent provider of radio frequency chips to Apple. Hence, the company is currently benefiting from strong iPhone sales courtesy of strong demand for iPhone 12 devices.
Strong iPhone Sales Projection to Boost Supplier Stocks
Apple’s near-term prospects are bright, driven by new iPhones that support 5G. Significant increase in iPhone sales across China and Japan remains noteworthy.
Per a Nikkei Asia report on Dec 15, 2020, Apple, currently sporting a Zacks Rank #1 (Strong Buy), is planning to increase production of iPhones in the first half of 2021 courtesy of strong demand for its 5G-enabled iPhone 12, and older iPhone 11 and iPhone SE. The Cupertino-based company expects to ship 95-96 million iPhones, indicating an increase of roughly 30% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the December-ended quarter, iPhone sales improved 17.2% from the year-ago quarter to $65.59 billion and accounted for 58.9% of total sales. The robust year-over-year growth was driven by strong demand for the iPhone 12 family.
Markedly, iPhone’s active installed base is now more than 1 billion. Apple quoted a recent survey report from 451 Research, which stated that customer satisfaction was 98% for the iPhone 12 family in first-quarter fiscal 2021.
Increasing penetration of 5G smartphones is also expected to be a tailwind for Apple’s component supplier companies. Notably, per a report by TrendForce, the penetration rate of 5G smartphones is expected to increase to 37% in 2021, following the 19% penetration rate in 2020.
Remarkably, even minimal changes in demand of iPhone-related devices create a stir among Apple’s supplier base. In this context, investors’ optimism is likely to get a boost with regard to these suppliers, which depend on the iPhone maker for significant portions of their total revenues.
Apple contributed 56% of Skyworks’ revenues in fiscal 2020. The chipmaker’s top-line growth is significantly dependent on the iPhone's growth trajectory.
Evidently, Skyworks expects second-quarter fiscal 2021 revenues in the range of $1.125 billion to $1.175 billion, representing revenue growth of 50% at the mid-point. The Zacks Consensus Estimate for revenues currently stands at $1.15 billion.
Non-GAAP earnings are anticipated to be $2.34 per share at the mid-point of the revenue range, representing growth of 75% year over year. The Zacks Consensus Estimate for earnings has been revised upward by 8.2% in the past seven days to $1.84, reflecting bullish sentiments.
Apart from strength in the 5G amplifier portfolio, Skyworks’ diversified offerings position it well to capitalize on momentum witnessed across medical end-markets.
The company also announced a new $2 billion stock repurchase program, which augurs well for bottom-line growth.
Notably, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 8.4% to $8.17 per share over the past seven days.
3 Other Suppliers Poised to Gain on Uptick in iPhone Sales
Skyworks’ peer in semiconductor radio-frequency market, Qorvo is anticipated to benefit from the uptick in iPhone sales as well. Apple accounted for 33% of the company’s total revenues in fiscal 2020. The company currently carries a Zacks Rank #2.
The company expects third-quarter fiscal 2021 revenues to be $1.06 billion (+/-$15 million). The consensus mark for revenues is pegged at $1.07 billion, which suggests an improvement of 22.75% from the year-ago quarter’s reported figure.
Non-GAAP adjusted earnings are anticipated to be $2.65 per share at mid-point for the fiscal third quarter. The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.67 per share, which increased by one cent in the past seven days. The figure indicates an improvement of 43.55% from the year-ago quarter’s reported figure.
Strength in smartphone vertical, upgrades in 5G smartphones, and gains from consistent growth in 5G infrastructure, power management, 5G base stations, Wi-Fi 6 solutions and defense end-markets are anticipated to have driven performance in third-quarter fiscal 2021. (Read More: Will 5G Content Expansion Drive Qorvo's Q3 Earnings?)
Further, solid uptake of Bulk Acoustic Wave (BAW) filters, with the reopening of economies, is expected to boost top-line growth. Moreover, expanding the portfolio of 5G base solutions amid accelerated deployment of 5G bodes well for the longer haul.
Notably, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 3 cents to $8.70 per share over the past seven days.
Further, Jabil, which is involved in supplying casings for iPhones and iPads, is expected to gain from solid uptick in iPhone sales. In fiscal 2020, Apple accounted for 20% of this Zacks Rank #2 company’s revenues.
In the November-ended quarter, its Diversified Manufacturing Services (DMS) revenues contributed 54% to total revenues and improved 13% year over year to $4.23 billion. For second-quarter fiscal 2021, Jabil expects total revenues between $6.2 billion and $6.8 billion. The Zacks Consensus Estimate is currently pegged at $6.50 billion.
DMS revenues are forecast to be $3.5 billion, which suggests an improvement of 22% year over year. The company’s core earnings are expected between 83 cents and $1.03 per share on a non-GAAP basis.
The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised upward by 9.2% to 95 cents in the past 60 days.
Additionally, investors’ confidence in the company’s notable contract wins in healthcare, automotive, cloud and 5G verticals hold promise.
Notably, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 14.6% to $4.63 per share over the past 60 days.
Moreover, Synaptics’ near-term top-line performance is likely to reflect gains from improving iPhone 12 demand. The company, currently carrying a Zacks Rank #2, is a display component supplier of Apple, which puts it in this list.
Notably, the company’s second-quarter fiscal 2021 performance is likely to have benefited from a healthy backlog of $314 million, as noted by management in its last earnings call. Apart from solid bookings, a growing customer base, rebound in smartphone market, robust growth in IoT space, and healthy product sell-in and sell-through patterns are expected to have acted as key catalysts.
The new design momentum with its OLED touch sensors is also likely to have benefited the top line during the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised upward by 2 cents to $2.16 in the past 30 days.
The company is well-poised to capitalize on its market-leading position for both touchpads and secure fingerprint sensors amid upbeat trends in PC shipments. Moreover, the company’s digital audio solutions are witnessing strong demand with premium headsets that primarily serve enterprise customers.
The consensus mark for the company’s fiscal 2021 earnings has been revised upward by 1.2% in the past 30 days to $6.94 per share.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.