SWKS Skyworks Solutions Inc

Skyworks Solutions Inc’s (SWKS) share price increased 5.4% to $25.80 on Oct 31 after it reported net income of $84.2 million or 44 cents per share in the fourth quarter of fiscal 2013, up from $61.6 million or 32 cents per share in the year-earlier quarter. For fiscal 2013, net income increased to $278.1 million or $1.45 per share from $202.0 million or $1.05 per share in the year-ago period.  

Excluding non-recurring items, adjusted earnings for the reported quarter were 64 cents per share compared with 53 cents in the year-ago quarter. The adjusted earnings in the reported quarter exceeded the Zacks Consensus Estimate of 53 cents.

For fiscal 2013, adjusted earnings were $2.20 per share versus $1.90 per share in fiscal 2012. The adjusted earnings for the reported fiscal beat the Zacks Consensus Estimate of $1.81. The year-over-year increase in earnings was driven by the growing portfolio of high-performance analog solutions.

Skyworks reported fourth quarter fiscal 2013 revenues of $477.0 million, up 13.3% year over year. Revenues also beat the Zacks Consensus Estimate of $475.0 million.

For fiscal 2013, revenues were $1,792 million, up 14% from the year-ago period and beat the Zacks Consensus Estimate of $1,780 million.

Gross profit was $209.1 million in the fourth quarter compared with $177.7 million in the year-ago period.

Skyworks continues to capitalize on global mobile connectivity and demand for high-performance analog solutions across a diverse set of vertical markets. During the reported quarter, Skyworks partnered with Silicon Labs to develop low-power, smart energy solutions supporting communication hubs, meters and in-home displays.

In addition, Skyworks is well-positioned to capitalize on the Internet of Things with high demand for high-performance analog solutions in new markets.

The company generated $166 million in cash flow from operations and ended the year with cash and equivalents of $511.1 million.  

Outlook
    
Going forward, revenues for the first quarter of fiscal 2014 are expected to be approximately $500 million. Skyworks also expects adjusted earnings per share of 66 cents in the first quarter.

The company believes that its strategy of diversifying its business, expanding into new verticals and continued focus on operational excellence will drive growth in the long term. Based on its product innovation and proprietary solutions the company is well positioned for sustainable above-market growth in the near term.

Skyworks currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look in the industry include Zacks Ranked #1 (Strong Buy) stocks such as Supertex Inc (SUPX) and Microchip Technology Inc. (MCHP), and NXP Semiconductors NV (NXPI), which carries a Zacks Rank #2 (Buy).
 

 
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