Skyworks Solutions, Inc. (SWKS - Free Report) reported net income of $94.5 million or 49 cents per share in the first quarter of fiscal 2014, up from $66.5 million or 34 cents per share in the year-earlier quarter. The increase in earnings was driven by increase in revenues.
Excluding non-recurring items, adjusted earnings for the reported quarter came in at 67 cents per share compared with 55 cents in the year-ago quarter. The adjusted earnings in the reported quarter exceeded the Zacks Consensus Estimate of 57 cents.
Skyworks reported revenues of $505.2 million, up 11.0% year over year. Revenues also beat the Zacks Consensus Estimate of $499.0 million.
Gross profit was $222.0 million in the reported quarter compared with $192.6 million in the year-ago comparable period.
Skyworks continues to capitalize on global mobile connectivity and demand for high-performance solutions across a diverse set of vertical markets. The company is empowering connectivity across a number of strategic applications including medical devices, wearable technologies, home automation and hybrid vehicles as well as smartphones and tablets facilitating better communication.
During the reported quarter, the company leveraged on its 802.11ac solutions in gaming consoles, set-top boxes, BluRay players and TVs for enhanced video streaming applications.
Moving forward, Skyworks is well-positioned to capitalize on the Internet of Things with healthy demand for high-performance wireless solutions in new markets.
The company generated $159 million cash from operations and ended the quarter with cash and equivalents of $648.6 million. The company repurchased approximately 670,000 shares of common stock during the reported quarter
Moving forward, the market reacted positively as share price increased by 3.89 or 13.59% in pre-market trading.
Revenues for the second quarter of fiscal 2014 are expected to be approximately $470 million, up 11% year over year. Skyworks also expects adjusted earnings per share to increase 23% year over year to 59 cents in the second quarter of fiscal 2014
The company believes that its strategy of diversifying its business and expanding into new verticals will drive growth in the long term. Based on its product innovation and proprietary solutions, the company is well positioned for sustainable above-market growth in the near term.
Skyworks currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the same sector include Broadcom Corporation carrying a Zacks Rank #1 (Strong Buy) and Marvell Technology Group Ltd. (MRVL - Free Report) and NXP Semiconductors NV (NXPI - Free Report) , both carrying a Zacks Rank #2 (Buy).