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Key Factors To Note Ahead of Skyworks (SWKS) Q4 Earnings
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Skyworks Solutions (SWKS - Free Report) is slated to release fourth-quarter fiscal 2021 results on Nov 4.
For the fourth quarter, revenues are expected in the range of $1.27-$1.33 billion (mid-point being $1.30 billion), representing revenue growth of 36% at the mid-point. Non-GAAP earnings are anticipated to be $2.53 per share at the mid-point of the revenue range, representing growth of 37% year over year.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.30 billion, which indicates an improvement of 36.1% from the year-ago quarter’s levels.
The consensus mark for earnings has been steady in the past 30 days at $2.54 per share, which suggests growth of 37.3% from the figure reported in the year-ago quarter.
Skyworks’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 21.4%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Robust uptake of 5G and Wi-Fi 6 solutions are likely to have driven Skyworks’ top line in the fiscal fourth quarter. Demand is being driven by growing need for high-speed connectivity amid the COVID-19-induced surge in remote-work and hybrid work innovation, video-streaming and web-based learning trends.
Acquisition of Infrastructure & Automotive business of Silicon Laboratories has expanded the company’s market opportunity and is likely to favor the company’s top line in the to-be-reported quarter. In July 2021, Skyworks announced the conclusion of the acquisition of the Infrastructure & Automotive business of Silicon Laboratories in an all-cash asset deal worth $2.75 billion.
Accelerated 5G deployment, globally, is a tailwind for the company. It continues to win deals from OEMs like Motorola, Samsung, OPPO, VIVO, and Xiaomi, which are expected to have driven Skyworks’ prospects in the fiscal fourth quarter. Solid demand uptick for 5G handsets, especially in China, bodes well.
Newly-released 3GPP standards have validated the extension of 5G technology into Internet of Things (IoT), Vehicle-to-everything (V2X) and other services. This is likely to have favored top line performance.
Healthy demand for the iPhone might have favored revenue numbers in the quarter under review. Skyworks supplies radio frequency chips to Apple (AAPL - Free Report) and derives a significant portion of its revenues from the latter.
Momentum for Skyworks’ bulk acoustic wave ("BAW") filters, particularly in mobile and broad markets, is likely to have driven the top line performance. The company has been witnessing significant design wins for BAW-enabled devices.
Deal wins from various customers across automotive, aerospace and defense and industrial IoT domains are anticipated to have continued in the fiscal fourth quarter.
Supply chain disruptions and higher expenses on product enhancements amid stiff competition from Qorvo (QRVO - Free Report) and Broadcom (AVGO - Free Report) in the radio frequency semiconductor market are anticipated to have limited Skyworks' margin expansion in the to-be-reported quarter.
Image: Bigstock
Key Factors To Note Ahead of Skyworks (SWKS) Q4 Earnings
Skyworks Solutions (SWKS - Free Report) is slated to release fourth-quarter fiscal 2021 results on Nov 4.
For the fourth quarter, revenues are expected in the range of $1.27-$1.33 billion (mid-point being $1.30 billion), representing revenue growth of 36% at the mid-point. Non-GAAP earnings are anticipated to be $2.53 per share at the mid-point of the revenue range, representing growth of 37% year over year.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.30 billion, which indicates an improvement of 36.1% from the year-ago quarter’s levels.
The consensus mark for earnings has been steady in the past 30 days at $2.54 per share, which suggests growth of 37.3% from the figure reported in the year-ago quarter.
Skyworks’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 21.4%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Factors Likely to Have Influenced Q4 Performance
Robust uptake of 5G and Wi-Fi 6 solutions are likely to have driven Skyworks’ top line in the fiscal fourth quarter. Demand is being driven by growing need for high-speed connectivity amid the COVID-19-induced surge in remote-work and hybrid work innovation, video-streaming and web-based learning trends.
Acquisition of Infrastructure & Automotive business of Silicon Laboratories has expanded the company’s market opportunity and is likely to favor the company’s top line in the to-be-reported quarter. In July 2021, Skyworks announced the conclusion of the acquisition of the Infrastructure & Automotive business of Silicon Laboratories in an all-cash asset deal worth $2.75 billion.
Accelerated 5G deployment, globally, is a tailwind for the company. It continues to win deals from OEMs like Motorola, Samsung, OPPO, VIVO, and Xiaomi, which are expected to have driven Skyworks’ prospects in the fiscal fourth quarter. Solid demand uptick for 5G handsets, especially in China, bodes well.
Newly-released 3GPP standards have validated the extension of 5G technology into Internet of Things (IoT), Vehicle-to-everything (V2X) and other services. This is likely to have favored top line performance.
Healthy demand for the iPhone might have favored revenue numbers in the quarter under review. Skyworks supplies radio frequency chips to Apple (AAPL - Free Report) and derives a significant portion of its revenues from the latter.
Momentum for Skyworks’ bulk acoustic wave ("BAW") filters, particularly in mobile and broad markets, is likely to have driven the top line performance. The company has been witnessing significant design wins for BAW-enabled devices.
Deal wins from various customers across automotive, aerospace and defense and industrial IoT domains are anticipated to have continued in the fiscal fourth quarter.
Supply chain disruptions and higher expenses on product enhancements amid stiff competition from Qorvo (QRVO - Free Report) and Broadcom (AVGO - Free Report) in the radio frequency semiconductor market are anticipated to have limited Skyworks' margin expansion in the to-be-reported quarter.
At present, Skyworks carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.