Skyworks Jumps on Solid Earnings

The company posts strong profits and guidance.
Author:
Publish date:

SAN FRANCISCO -

Skyworks Solutions

(SWKS) - Get Report

grew its bottom line 36% in its fiscal second quarter, and forecast better-than-expected results in the current quarter.

Shrugging off the weakness in the cell phone market experienced by some of its competitors, Skyworks said sales in the three months ended March 28 totaled $201.7 million, compared with $180.2 million in revenue at this time last year.

The average analyst expectation called for sales of $199.5 million.

Shares or Skyworks jumped 8.5%, or 63 cents, at $8 in extended trading Tuesday.

The Woburn, Mass., chipmaker posted net income of $16.7 million, or 10 cents a share, vs. $12.2 million, or 8 cents a share at this time last year.

Skyworks said the results included 4 cents of stock option compensation, as well as a penny charge for acquisition-related amortization expenses and a one penny charge for a tax adjustment.

Analysts were looking for 15 cents EPS, excluding the stock option compensation expense.

Skyworks credited market share gains and diversification into new markets for its performance. Skyworks makes radio frequency chips used in cell phones and other electronic devices such as industrial machinery.

On Monday, chipmaker

Texas Instruments

(TXN) - Get Report

offered a disappointing outlook based on weakness in the market for high-end cell phones.

"Based on continued end market diversification and new product ramps at leading handset customers, we are experiencing healthy demand and accelerating growth," said CFO Donal Palette in a statement.

The company projected sales of $210 million in the current quarter with adjusted EPS of 17 cents. Wall Street was looking for revenue of $207.5 million with adjusted EPS of 16 cents.