This semiconductor company beat estimates by a penny last quarter, but the company lowered next quarter’s guidance, so it has moved to a ‘Hold’.
Skyworks Solutions (SWKS)
From Cabot Benjamin Graham Value Investor
Skyworks Solutions (SWKS) reported disappointing first-quarter results. The company’s slowdown is caused by weak demand from Apple, one of Skyworks’ largest customers (44% of total sales). Management lowered its sales guidance for the second quarter, but raised its earnings forecast.
The new Apple iPhone 7, due to launch in September, will include 10% to 15% higher Skyworks content compared to previous iPhones. The increase will provide a much needed boost to Skyworks’ sales later in 2016, and help SWKS stock price rebound before year end. Hold.
J. Royden Ward, Cabot Benjamin Graham Value Investor, www.cabot.net, 978-745-5532, July 1, 2016