WOBURN, Mass. (TheStreet) -- Shares of Skyworks Solutions (SWKS) - Get Report jumped 10% Friday after the company lifted revenue and profit guidance for the next quarter on stronger-than-expected demand for its microchips, which are used in a range of products, including handheld devices and wireless networking gear.
After Thursday's market close, the company said it now "intends to deliver" per-share earnings in the fiscal first quarter, which ends Dec. 9, of 25 cents a share, adjusted to exclude items. That's 47% above EPS in the year-ago period and better than the 22 cents analysts were projecting.
Skyworks also gave a revenue range for the first quarter: $238 million to $242 million. The consensus top-line target among analysts was about $231 million.
Friday afternoon, the company's stock was trading at $12.03, up $1.06, or nearly 10%. Volume reached 14.7 million shares, more than double the daily average turnover in the name.
Also helping the rally in Skyworks' shares Friday was the investment firm UBS, which lifted its price target to $16 and its profit estimates, to reflect the new guidance.
Meanwhile, Skyworks also reported a fairly healthy third quarter, with adjusted earnings of $41.8 million, or 24 cents a share, topping analysts' forecasts by two pennies.
Revenue also bested estimates, though narrowly, coming in at $228 million, down 2% from a year ago. Expectations were for revenue of $222 million.
Skyworks' sanguine remarks come after a burst of similarly hopeful earnings reports from those tech companies that play in the networking market, including bellwethers
, as well as smaller companies such as
RF Micro Devices
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.