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.
Skyworks Solutions (SWKS) Q4 Earnings: What's in Store?
Read MoreHide Full Article
Skyworks Solutions Inc. (SWKS - Free Report) is set to release fourth-quarter fiscal 2016 earnings on Nov 3. In the last quarter, the company reported a positive earnings surprise of 2.68%. Notably, the company delivered positive earnings surprises in the last four quarters, with an average of 1.23%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Skyworks delivered mixed third-quarter fiscal 2016 results. While the company’s revenues missed the Zacks Consensus Estimate, its earnings per share comfortably beat consensus expectations. However, on a year-over-year basis, both the top and the bottom line declined.
Skyworks is well positioned to capitalize on the Internet of Things with healthy demand for high-performance wireless solutions in new markets. The company continues with its strategy of providing custom integrated solutions and diversifying its business into high-margin verticals.
Leveraging on product innovation and broad-based customer demand, the company appears poised for sustainable above-market growth in the near term. We remain impressed with its quarterly results so far, its deep customer engagements, clear visibility into future generation architectures, and internal margin enhancement initiatives.
The company expects fourth-quarter fiscal 2016 revenues to be up 10–11% sequentially to $831 million at the midpoint, with non-GAAP earnings of $1.43 per share.
During the quarter, Skyworks announced that many of its semiconductor solutions are powering the online connectivity units of LG Electronics meant for improving connectivity and convenience of Volkswagen automobiles. This development is expected to have a positive impact on results in the to-be reported quarter.
Skyworks also announced that it has acquired the remaining 34% interest in the filter joint venture that it inked with Panasonic in 2014. This acquisition strengthened Skyworks’ position as one of the global leaders in integrated-filter solutions.
Earnings Whispers?
Our proven model does not conclusively show that Skyworks is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Skyworks’ Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.33. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Skyworks carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
SITO Mobile, Ltd. with an Earnings ESP of +100.00% and a Zacks Rank #1.
Asure Software, Inc. (ASUR - Free Report) with an Earnings ESP of +14.29% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Skyworks Solutions (SWKS) Q4 Earnings: What's in Store?
Skyworks Solutions Inc. (SWKS - Free Report) is set to release fourth-quarter fiscal 2016 earnings on Nov 3. In the last quarter, the company reported a positive earnings surprise of 2.68%. Notably, the company delivered positive earnings surprises in the last four quarters, with an average of 1.23%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Skyworks delivered mixed third-quarter fiscal 2016 results. While the company’s revenues missed the Zacks Consensus Estimate, its earnings per share comfortably beat consensus expectations. However, on a year-over-year basis, both the top and the bottom line declined.
Skyworks is well positioned to capitalize on the Internet of Things with healthy demand for high-performance wireless solutions in new markets. The company continues with its strategy of providing custom integrated solutions and diversifying its business into high-margin verticals.
Leveraging on product innovation and broad-based customer demand, the company appears poised for sustainable above-market growth in the near term. We remain impressed with its quarterly results so far, its deep customer engagements, clear visibility into future generation architectures, and internal margin enhancement initiatives.
The company expects fourth-quarter fiscal 2016 revenues to be up 10–11% sequentially to $831 million at the midpoint, with non-GAAP earnings of $1.43 per share.
During the quarter, Skyworks announced that many of its semiconductor solutions are powering the online connectivity units of LG Electronics meant for improving connectivity and convenience of Volkswagen automobiles. This development is expected to have a positive impact on results in the to-be reported quarter.
Skyworks also announced that it has acquired the remaining 34% interest in the filter joint venture that it inked with Panasonic in 2014. This acquisition strengthened Skyworks’ position as one of the global leaders in integrated-filter solutions.
Earnings Whispers?
Our proven model does not conclusively show that Skyworks is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Skyworks’ Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.33. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Skyworks carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
SKYWORKS SOLUTN Price and EPS Surprise
SKYWORKS SOLUTN Price and EPS Surprise | SKYWORKS SOLUTN Quote
Stocks to Consider
Here are some companies that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Stratasys Ltd. (SSYS - Free Report) with an Earnings ESP of +41.67% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
SITO Mobile, Ltd. with an Earnings ESP of +100.00% and a Zacks Rank #1.
Asure Software, Inc. (ASUR - Free Report) with an Earnings ESP of +14.29% and a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>