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

Skyworks Solutions SWKS 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-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 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 and NETGEAR NTGR 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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