
SkyWorks (SWKS) Stock Slips in After-Hours Trading Despite Q3 Earnings Beat
NEW YORK (TheStreet) -- Shares of SkyWorks (SWKS) - Get Report are slumping by 3.48% to $68.45 in after-hours trading Thursday, despite the Woburn, MA-based semiconductor company reporting better-than-expected third quarter results after today's closing bell.
SkyWorks posted earnings of $1.24 per share on revenue of $751.7 million, while analysts surveyed by Thomson Reuters expected the company to report earnings of $1.21 per share on revenue of $750.22 million.
SkyWorks reported earnings of $1.34 per share on revenue of $810 million for the third quarter of last year.
The company is primarily known for providing mobile connectivity services in smartphones such as Apple's (AAPL) iPhone and Samsung's Samsung Galaxy S7. SkyWorks noted that it has improved several products, including its SkyBlue technology, which allows for enhanced power management and LED flash drivers.
"Our highly integrated solutions are enabling a broad array of applications ranging from streaming media to e-commerce to cloud-based services," SkyWorks CEO Liam K. Griffin said in a statement. "Accordingly, we are planning for sustained market outperformance with operating leverage."
Additionally, SkyWorks announced an increase of its quarterly dividend to shareholders to 28 cents per share from 26 cents per share, as well as a new $400 million stock repurchase program. In the short-term, the company expects revenue to increase between 10% and 11% to $831 million with earnings of $1.43 per share.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate SKYWORKS SOLUTIONS INC as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, 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. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: SWKS
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