Semiconductor company Skyworks Solutions, Inc. (NASDAQ: SWKS) reported a decline in fourth-quarter earnings, which however came in above the consensus forecast. Hurting the bottom-line, revenues dropped but topped the expectations.
At $827 million, fourth-quarter revenues were down 18% from the year-ago period, but slightly above the market’s prediction.
Reflecting the weak top-line performance, adjusted earnings decreased to $1.52 per share from $1.94 per share last year. Market watchers had forecast a faster decline. Net profit, on a reported basis, was $211 million or $1.22 per share, down from $286 million or $1.58 per share in the year-ago quarter.
Liam Griffin, chief executive officer of Skyworks, said, “Looking ahead, we are well-positioned to execute on our mission of delivering compelling 5G solutions across a growing and diverse suite of customers and markets. Our systems-level approach, highlighted by our Sky5 platform, now includes strategic capabilities in BAW, Wi-Fi 6, MIMO and custom diversity receive.”
The company said it is on track to deliver sequential revenue and earnings growth in the first quarter. Revenues are expected to be between $870 million and $890 million in the first three months of fiscal 2020 when adjusted earnings are expected to come in at $1.65 per share.
During the fiscal year, the company returned $932 million to shareholders in the form of dividends and repurchase of about 8.9 million shares. The management also declared a cash dividend of $0.44 per share, to be paid on December 24, 2019, to stockholders of record on December 3, 2019.
The major achievements during the October-quarter include powering Samsung’s first foldable 5G smartphone and 4G mobile devices. Also, the ramp of the Sky5 portfolio, supporting multiple 5G launches, was expedited during the period.
Among competitors, Analog Devices (ADI) is scheduled to publish its fourth-quarter numbers on November 26 before the opening bell. Analysts predict a 21% decline in earnings to $1.22 per share. Last week, Microchip Technology (MCHP) reported lower earnings and revenues for the second quarter, owing to weakness in the core Microcontroller business segment.
Though Skyworks shares had a positive start to the year, they lost momentum after the initial months. The stock, which gained 57% since the beginning of the year, closed Tuesday’s regular session higher.
On the heels of lawmakers moving closer to passing the stimulus bill, inflations concerns gripped the market after Federal Reserve chief Jerome Powell at a meeting said the reopening would
Though the retail boom triggered by the pandemic was estimated to be short-lived initially, the shopping spree continued as customers stocked up on essential items, concerned about the persistent market
Shares of Gap Inc. (NYSE: GPS) were up 5.8% in afternoon hours on Friday. The stock has gained 103% over the past 12 months. Gap reported mixed results for the