NEW YORK (TheStreet) -- Shares of Skyworks Solutions (SWKS) were gaining 4.7% to $102.13 Monday after the analog semiconductor maker announced a new family of switches for Internet of Things applications.
Skyworks Solutions said it expanded its portfolio of RF switches with a suite of analog control IC for Internet of Things applications including the connected home and smart lighting. The new switches can support high data rates and broad frequency ranges, and can operate at elevated temperatures which make them suited for embedded smart energy and lighting applications.
"The introduction of our newest devices reflects Skyworks' commitment to delivering the broadest, highest volume RF switch portfolio in the industry with unmatched product quality, customer support and the best product development pipeline," David Stasey, vice president and general manager of Analog Solutions for Skyworks said. "Our solutions continue to enable some of the fastest growing Internet of Things applications as the world becomes more connected."
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, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SWKS's very impressive revenue growth greatly exceeded the industry average of 0.0%. Since the same quarter one year prior, revenues leaped by 58.4%. 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 4.46, which clearly demonstrates the ability to cover short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SKYWORKS SOLUTIONS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 112.50% and other important driving factors, this stock has surged by 134.92% 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 ($5.12 versus $2.37).
- You can view the full analysis from the report here: SWKS Ratings Report