NEW YORK (TheStreet) -- Shares of Skyworks Solutions Inc. (SWKS) are up 4.96% to $45.21 after the company, an innovator of high performance analog semiconductors, updated its financial outlook for the third quarter of fiscal 2014.
The company now anticipates current quarter revenue of $570 million, a 31% percent year-over-year increase and 19% sequential growth.
Skyworks also expects to deliver non-GAAP diluted earnings per share of 80 cents, a 48% increase when compared to the same period a year ago, and 29% sequential growth.
Previously, the company guided to $535 million in revenue and 73 cents of non-GAAP diluted earnings per share on April 22, 2014 as part of its second fiscal quarter earnings release.
TheStreet Ratings team rates SKYWORKS SOLUTIONS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SKYWORKS SOLUTIONS INC (SWKS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SWKS's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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. Along with this, the company maintains a quick ratio of 5.55, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 90.03% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SWKS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SKYWORKS SOLUTIONS INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKYWORKS SOLUTIONS INC increased its bottom line by earning $1.44 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.81 versus $1.44).
- Net operating cash flow has significantly increased by 64.49% to $214.20 million when compared to the same quarter last year. In addition, SKYWORKS SOLUTIONS INC has also vastly surpassed the industry average cash flow growth rate of 3.25%.You can view the full analysis from the report here: SWKS Ratings Report