Skyworks Solutions published fiscal fourth-quarter financial results that blew past Wall Street’s earnings expectations on revenue and profit. The firm’s income last period also greatly exceeded the guidance it issued in August thanks to its lineup and client list.
The Irvine, California-based chipmaker anticipates even greater returns in the fiscal first quarter of 2021.
Skyworks’ Blow Away FQ4 Earnings
In the September period, Skyworks took in $957 million with adjusted earnings per share (EPS) of $1.85. Market analysts believed it would report sales of $842.2 million and EPS of $1.52. Compared to the same period last year, the company’s income and profit jumped by 15.6 and 21.7 percent, respectively.
In addition to surprising Wall Street, the corporation’s latest quarterly intake topped its FQ4 outlook. The firm underestimated its gross income by 38.66 percent and its EPS by 38 percent.
CEO Liam K. Griffin characterized the 2020 fiscal year as both challenging and rewarding. He indicated the coronavirus pandemic created a need for dependable, high-performance products that facilitated wireless networking without mentioning it directly. As his employer recently deployed its 5G components portfolio, it met the consumer and commercial demand for remote work enabling solutions.
In a press release, Skyworks noted it supported new fifth-generation networking offerings from Samsung, Xiaomi, and Oppo. The firm also worked with Square to launch contactless retail solutions, supplied Netgear with parts for its Wi-Fi 6 routers, and helped Facebook prepare its latest Oculus headgear.
This year, Skyworks suffered from temporary factory closures and weakened end-market interest. But its resiliency never wavered, and it exited the fiscal year on a strong note as a result.
Positive FQ1 2021 Forecast
For the current quarter, Skyworks anticipates generating revenue of between $1.04 billion and $1.07 billion with EPS of $2.06. Wall Street has less faith in the firm’s performance and pegged its sales at $935.4 million with profit of $1.80 per share. The internal and external forecasts for its intake are above its FQ1 2020 income of $896 million and $1.68 in EPS.
CFO Kris Sennesael said his company’s robust forecast is informed by the strong appeal of its 5G smartphone platforms and the rest of its portfolio.
Though not mentioned in its newest regulatory filing, Skyworks derives around half of its income from Apple. The manufacturer supplies the electronics giant with radiofrequency (RF) and analog chips. Due to the impact of COVID-19 on its supply chain, the corporation launched its 5G enabled iPhones later than normal. Nevertheless, consumers responded positively to this year’s models, and demand has exceeded expectations.
If Apple has or will order large quantities of Skyworks components soon, the firm should have no trouble hitting its FQ1 projection. Given the forward-looking nature of its offerings and impressive customer base, the chipmaker should do well throughout next year.