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Skyworks (SWKS) Q4 Earnings & Revenues Top Estimates, Up Y/Y

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Skyworks Solutions (SWKS - Free Report) reported fourth-quarter fiscal 2021 non-GAAP earnings of $2.62 per share, beating the Zacks Consensus Estimate by 3.2% and surging 42% year over year.

Revenues of $1.311 billion surpassed the Zacks Consensus Estimate by 0.7% and soared 37% on a year-over-year basis.

The company’s quarterly results benefited from an increased rate of 5G deployment. Mobile and broad markets portfolios witnessed double-digit growth on a year-over-year and quarter-over-quarter basis. The improvement was driven by broad-based momentum owing to higher demand for the company’s connectivity solutions, noted management.

For fiscal 2021, the company reported non-GAAP earnings of $10.50 per share, up 71% on a year-over-year basis. Revenues came in at $5.109 billion, up 52% year over year.

Skyworks Solutions, Inc. Price, Consensus and EPS Surprise

 

Skyworks Solutions, Inc. Price, Consensus and EPS Surprise

Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote

 

Expanding User and Partner Base

The adoption of Skyworks’ Sky5 remains strong, as the platform powers upcoming smartphone launches from well-known Tier 1 OEMs. The company also shipped Sky5 platforms that extend support to Samsung’s Galaxy Book Pro 360 in the quarter under review.

The company provided 5G CPE solutions to Nokia (NOK - Free Report) and supplied power isolation solutions to a electric vehicles or EV manufacturer, which also makes residential solar and energy storage systems.

Skyworks collaborated with Swisscom to roll out Wi-Fi 6 GPON residential gateways. The company also partnered with Amazon Ring and Comcast to launch connected home and security devices.

The company also ramped up Wi-Fi 6 and 6E platforms at  Cisco (CSCO - Free Report) and NETGEAR (NTGR - Free Report) in the reported quarter. Skyworks landed design wins at Garmin supporting mobile fitness apps.

The company also enabled advanced Charge Control Unit systems for a Tier-1 automotive OEM based in Europe.

Operating Details

Non-GAAP gross margin expanded 60 basis points (bps) on a year-over-year basis to 51%.

Research & development expenses, as a percentage of revenues, declined 180 basis points (bps) year over year to 11.4%.

Selling, general and administrative expenses increased 120 bps to 7.7% in the reported quarter.

Non-GAAP operating margin expanded 220 bps on a year-over-year basis to 37.2% in the reported quarter.

Balance Sheet & Cash Flow

As of Oct 1, 2021, cash & cash equivalents and marketable securities were $1.027 billion compared with $2.98 billion as of Jul 2, 2021.

Long-term debt was $2.236 billion as of Oct 1, 2021.

Cash generated by operating activities was $398.3 million compared with $272.9 million in the previous quarter.

Skyworks’ announced a quarterly dividend of 56 cents per share payable on Dec 14, 2021, to shareholders as of Nov 23.

Guidance

For the first quarter of fiscal 2022, Skyworks expects revenues between $1.475 billion and $1.525 billion. Non-GAAP earnings are expected to be $3.10 per share for the fiscal first quarter.

This Zacks Rank #3 (Hold) company expects a gross margin in the range of 51-51.5%. Operating expenses are expected to be $184-$187 million. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here

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