Skyworks Solutions (NasdaqGS:SWKS) Q4 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Skyworks Solutions, Inc. (NasdaqGS:SWKS) is scheduled to report Q4 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $1.52/share on revenue of $840.6 million. The consensus earnings per share (EPS) of $1.52/share is based on a poll of 25 analysts and represents a growth in eps of 0.1% over the same quarter last year, when the company reported earnings of $1.52/share.

The revenue forecast of $840.6 million based on a poll of 22 analysts implies a year-over-year (YoY) growth in revenue of 1.6%. Last year the company reported $827.4 million in revenue for the quarter.

Expected to report EPS growth of 0.1% for Q4, 2020
Metric Expected Prior Year YoY Change
Revenue $840.61 $827.40 1.6%
EPS $1.52 $1.52 0.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters and met expectations 1 quarter.

What are your expectations from Skyworks Solutions, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2020 $1.14 $1.25 10.0% Beat
Q2, 2020 $1.33 $1.34 0.7% Beat
Q1, 2020 $1.66 $1.68 1.4% Beat
Q4, 2019 $1.50 $1.52 1.5% Beat
Q3, 2019 $1.34 $1.35 0.6% Beat
Q2, 2019 $1.43 $1.47 2.8% Beat
Q1, 2019 $1.83 $1.83 0% Met
Q4, 2018 $1.92 $1.94 1.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 26, 2020, the stock price reacted by falling −3.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $136.30 $131.61 −3.4% Decline
May 4, 2020 $98.83 $104.71 5.9% Increase
January 23, 2020 $124.90 $122.31 −2.1% Decline
November 12, 2019 $100.38 $101.14 0.8% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.54, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.54 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Skyworks Solutions, Inc. is currently trading at $147.29/share, down −1.6% for the day. The company is trading at approximately 92.9% of its 52-week high of $158.61/share. The company’s stock price is up 11.9% since the last earnings report and down −3.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 50.11 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:SWKS Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 31.60 and a forward P/E multiple of 25.44.

Skyworks Solutions, Inc.’s current share price also implies a price-to-book (P/B) multiple of 5.88. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q3
Period End Date June 26, 2020
Stock Price (Current) $147.29
P/E Ratio 31.6x
P/E Ratio (Fwd) 25.4x
PEG Ratio −2.4
Total Debt / Total Capital 0.7%
Levered Free Cash Flow $1.027 billion
EV / EBITDA 19.7x

Finbox

Skyworks Solutions, Inc. is a large-cap stock with a market capitalization of $24.603 billion and a total enterprise value of $23.644 billion. The company operates in the Information Technology sector and the Semiconductors & Semiconductor Equipment industry.

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators, as well as wireless radio integrated circuits. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was founded in 1962 and is headquartered in Irvine, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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