NEW YORK (TheStreet) -- Shares of Skyworks Solutions(SWKS) - Get Report are plunging 8.87% to $64.63 on heavy trading volume Friday afternoon as analysts express concerns about a spike in inventories.

Inventories grew 35% in the third quarter on an absolute basis, indicating a "much more muted" Apple (AAPL) iPhone 7 ramp and weakness within legacy models, Pacific Crest said in a note released this morning. 

"With Apple revenue expected to decline greater than 25% year-over-year in the September quarter, despite [radio frequency (RF)] content gains in the iPhone 7 (15% to 20%), we see limited catalysts for Skyworks until we see another major upgrade cycle (OLED iPhone in 2017)," the firm noted.

But MKM Partners contends that iPhone concerns are "noise" that that upcoming quarters should demonstrate that Skyworks can continue to develop "high-value, custom parts that meet increasing RF demands at top smartphone customers."

Without Apple, Skyworks said it expects its fourth-quarter business to grow between 10% and 12% year-over-year, Pacific Crest added.

In all, Skyworks reported adjusted earnings of $1.24 per share on revenue of $751.7 million vs. analysts' estimates of earnings of $1.21 per share on revenue of $750.2 million.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Skyworks' strengths such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: SWKS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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