"We reiterate our rating and raise our estimates on Skyworks Solutions due to industry checks that reveal ongoing momentum into its North American and Chinese smartphone positioning and improving visibility into 2015 prospects," analysts said about the Massachusetts-based semiconductor company which supplies chips and components for Apple's (AAPL) iPhone 6.
"We recommend that investors buy SWKS shares ahead of reporting for what, in our opinion, should prove to be another record December quarter for Apple and Skyworks ahead of prospects for further content increases in the iPhone 7 and upcoming Samsung Electronics' (SSNLF) models," analysts noted.
Additionally, JMP recommends the stock "ahead of further gross margin improvements that put it on a trajectory toward $7 per share in earnings power by 2017, and because Skyworks is exceptionally well positioned in Chinese handset OEMs that are seeing triple-digit increases in 4G LTE adoption."
Separately, 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 robust 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 compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SWKS's very impressive revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues leaped by 50.6%. Growth in the company's revenue appears to have helped boost 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 3.77, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 104.54% and other important driving factors, this stock has surged by 151.45% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 reported significant earnings per share improvement 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 $2.37 versus $1.44 in the prior year. This year, the market expects an improvement in earnings ($4.47 versus $2.37).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 107.7% when compared to the same quarter one year prior, rising from $84.20 million to $174.90 million.
- You can view the full analysis from the report here: SWKS Ratings Report