Skyworks Beats Earnings and Sales Estimates But Falls on Guidance

Skyworks was able to top analysts' fiscal second quarter earnings and revenue expectations but issued weaker-than-expected guidance.
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Shares of semiconductor maker Skyworks Solutions  (SWKS) - Get Report fell after hours Monday following its fiscal second quarter earnings release as the company provided fiscal third quarter guidance that failed to meet expectations. 

Skyworks reported fiscal second quarter earnings ending March 27 of $1.34 per share on revenue of $766 million. Analysts were expecting the company to report earnings of $1.33 per share on revenue of $757.78 million. 

However, for the fiscal third quarter ending in June, the company expects an earnings range with a mid-point at $1.13 per share on revenue between $670 million and $710 million. 

Wall Street was expecting earnings of $1.25 per share on revenue of $727.24 million. 

"Given the supply chain and demand disruptions associated with COVID-19, visibility is limited for the June quarter, resulting in a wider revenue range compared to prior quarters,” said Skyworks CFO Kris Sennesael. "This guidance is based on our current expectations of customer demand and our continued ability to manufacture and ship products, each of which could be impacted by COVID-19."

Skyworks shares fell 3.3% to $96.28 after hours following the report.

The company declared a quarterly dividend of 44 cents per share payable June 11 to shareholders of record on May 21. 

The company announced on April 14 that it is temporarily closing its manufacturing operations in Mexicali, Mexico out of precautions due to the COVID-19 outbreak.

But the company was able to open that facility back up less than two weeks later on April 27. Skyworks says that the temporary closure did not hurt its supply chain and the company said that it has instituted multiple protocols to protect against the spread at its facilities worldwide.