Skyworks Solutions Inc. Stock Buy Recommendation Reiterated (SWKS)
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- The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- SWKS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SWKS has a quick ratio of 2.40, which demonstrates the ability of the company to cover short-term liquidity needs.
- SKYWORKS SOLUTIONS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SKYWORKS SOLUTIONS INC increased its bottom line by earning $1.19 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.19).
- 47.10% is the gross profit margin for SKYWORKS SOLUTIONS INC which we consider to be strong. Regardless of SWKS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.70% trails the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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