SWKS Stock: Skyworks Solutions Sinks On Outlook

Chipmaker Skyworks Solutions (SWKS) late Monday matched Wall Street’s targets for its fiscal second quarter but missed views with its outlook for the current period. SWKS stock tumbled in extended trading.

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The Irvine, Calif.-based company earned an adjusted $2.02 a share on sales of $1.15 billion for the quarter ended March 31, in line with estimates. On a year-over-year basis, Skyworks earnings fell 23% while sales dropped 14%.

For the current quarter, Skyworks forecast adjusted earnings of $1.67 a share on sales of $1.07 billion. That’s based on the midpoint of its guidance. Analysts polled by FactSet had called for earnings of $2.06 a share on sales of $1.15 billion in the June quarter. In the year-earlier period, Skyworks earned an adjusted $2.44 a share on sales of $1.23 billion.

“Despite a challenging macro backdrop, the fundamentals of our business remained strong in the second quarter with solid profitability and robust cash generation,” Chief Executive Liam Griffin said in a news release.

He added, “At a higher level, we are driving operational efficiency while leveraging our leading-edge technologies and world-class manufacturing capabilities to capture new opportunities across an expanding set of customers.”

SWKS Stock Retreats After Report

In after-hours trading on the stock market today, SWKS stock dropped 4.8% to 100.21. During the regular session Monday, SWKS stock rose 1.1% to close at 105.24.

Skyworks makes wireless networking chips. It produces analog and mixed-signal semiconductors for aerospace and defense, automotive, broadband, cellular infrastructure, connected home, industrial, smartphone and other markets.

Semiconductor stocks exposed to the personal computer and smartphone markets mostly have offered lower outlooks for the June quarter amid weak demand. Other companies in that camp have included Advanced Micro Devices (AMD), Cirrus Logic (CRUS), Qorvo (QRVO) and Qualcomm (QCOM).

SWKS stock ranks No. 12 out of 30 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. Skyworks Solutions has a so-so IBD Composite Rating of 73 out of 99.

IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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