Semiconductor company Skyworks Solutions (NASDAQ: SWKS) reported lower earnings and revenues for the third quarter of 2019. The results also missed the Street view. The company’s stock lost about 5% during Wednesday’s extended trading session.
Earnings, on an adjusted basis, dropped to $1.35 per share in the third quarter from $1.64 per share last year and missed the estimates. Reported profit was $144 million or $0.83 per share, down from last year’s earnings of $287 million or $1.57 per share.
Dragging down the bottom-line, third-quarter revenues declined 14% annually to $767 million, which also fell short of analysts’ consensus estimate.
Liam Griffin, CEO of Skyworks, said, “The core fundamentals of our business remain strong despite current market volatility. Demand for advanced connectivity and the expansive nature of 5G are creating real-time opportunities for architectures that facilitate high-speed data, near-zero latency and exceptional reliability,”
Also see: Skyworks Solutions Q2 2019 Earnings Call Transcript
During the quarter, the company commenced volume production of its BAW-enabled Sky5 devices. The management, meanwhile, hiked the quarterly dividend by 16% to $0.44 per share. The dividend will be paid on September 17, 2019, to stockholders of record on August 27, 2019.
Looking ahead, the company said it is on track to deliver sequential revenue and earnings growth in the fourth quarter. Revenues are expected to be between $815 million and $835 million in the September quarter when adjusted earnings are expected to come in at $1.50 per share.
Also read: Booking Holdings reports better-than-expected Q2 results
Skyworks shares have declined 5% in the past twelve months. However, they regained momentum and rose 17% since the beginning of the year. The stock lost sharply during Wednesday’s extended trading after closing the regular session higher.