Company Reports

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. Although the company faces an intense competitive landscape, it should thrive as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

Narrow-moat Skyworks Solutions reported decent fiscal second-quarter results. Still, it provided investors with a disappointing outlook for the June quarter and, more importantly, hinted at 10% lower dollar content in the next wave of Apple iPhones coming to market in late 2024, which should weigh on fiscal 2025 revenue. We don’t believe the lost content is associated with an in-house Apple product, nor is it the start of a death spiral for the company’s relationship with Apple. Still, it provides yet another headwind to future radio frequency revenue growth. We cut our fair value estimate to $115 from $133. Shares sold off as much as 9% after hours to $96, so still have a modest margin of safety for investors today.

Narrow-moat Skyworks Solutions reported fiscal first-quarter results and provided investors with an outlook for the March quarter in line with our expectations, as the firm is seeing a recovery in demand from consumer Internet of Things, or IoT, and Android-based smartphone customers, all while revenue at key customer Apple appears to be steady. We retain our $133 fair value estimate and shares still appear undervalued to us.

After meeting with Skyworks Solutions’ management team at CES 2024, we reiterate our confidence that the company will remain a radio frequency industry leader that should generate healthy profitability in the years ahead. We maintain our $133 fair value estimate for narrow-moat Skyworks and continue to view the shares as undervalued for long-term, patient investors willing to ride out the recent downturn in smartphone, wireless infrastructure, and Internet of Things device demand.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. Although the company faces an intense competitive landscape, it should thrive as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

Narrow-moat Skyworks Solutions reported solid fiscal fourth-quarter results but provided investors with a disappointing forecast for the December quarter, along with gloomy commentary for the start of calendar 2024. We cut our fair value estimate to $133 from $155 but continue to view the stock as materially undervalued in the mid-$80 range and think that the resiliency of the firm’s radio frequency chip business and earnings power is underappreciated.

Narrow-moat Skyworks Solutions reported predictably soft fiscal third-quarter results and provided investors with a decent outlook for the September quarter. We think the outlook implies that Skyworks will earn a good amount of radio frequency chip content within Apple’s upcoming iPhone 15 series, but with little dollar content growth per device versus last year’s iPhone 14 series. Meanwhile, Android smartphone demand is recovering slightly but still severely depressed overall. We maintain our $155 fair value estimate and view shares as undervalued.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. Although the company faces an intense competitive landscape, it should thrive as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

Narrow-moat Skyworks Solutions reported decent fiscal second-quarter results but provided investors with a forecast for the June quarter that fell short of our expectations. Still, the weak guidance does not deter us from our long-term view that the company will remain a winner in the radio frequency chip space. We maintain our $155 fair value estimate and see an attractive margin of safety for investors willing to ride out the latest cyclical downturn in the RF industry. We’re encouraged by commentary around Skyworks’ secure position as a leading supplier into Apple’s next wave of iPhones. Meanwhile, we view the company’s gloomy near-term outlook as cyclical, rather than structural, due to macroeconomic headwinds and a horrific inventory correction at Android-based smartphone makers.

Narrow-moat Skyworks Solutions reported solid fiscal first-quarter results and provided investors with a decent forecast for the March quarter considering a tough macroeconomic environment and soft smartphone demand. We still consider Skyworks as best-of-breed in the radio frequency, or RF, chip space and maintain our $155 fair value estimate. We continue to view shares as undervalued, and management likely thinks so too as the firm announced a $2 billion stock buyback authorization.

Narrow-moat Skyworks Solutions reported solid fiscal 2022 fourth-quarter results, but like its rivals Qorvo and Qualcomm, it provided investors with a downbeat forecast for the December quarter. Skyworks has relatively less exposure to China-based Android smartphone makers, where demand has cratered, but still expects soft demand at Samsung and in broad market products, while demand from Apple will likely be steady at best. We've reduced our fair value estimate to $155 per share from $180 but still view the shares as materially undervalued for long-term investors.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and other electronics manufacturers. Although the company faces an intense competitive landscape, it should succeed in the coming years as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

Skyworks Solutions reported solid fiscal third-quarter results and provided investors with a healthy outlook for the September quarter and hinted at a nice upcoming ramp of selling radio frequency, or RF, chips into Apple’s latest iPhones. We are optimistic that Skyworks will remain a key supplier into future iPhones, not just in calendar 2022 and 2023, but also in the long run. We maintain our $180 fair value estimate and continue to view shares as materially undervalued and one of our top picks within the semiconductor industry.

Skyworks Solutions reported solid fiscal first-quarter results but provided investors with a slightly disappointing forecast for the June quarter, as COVID-19 restrictions in China should hamper Apple's iPhone production and, in turn, Skyworks' ability to sell its radio frequency (RF) parts into Apple. We cut our fair value estimate to $180 from $210 as we've tapered our near-term and long-term growth expectations for Skyworks, but we continue to view the shares as significantly undervalued. Management agrees, setting a record with $418 million in stock buybacks in the March quarter, with plans to buy more this quarter.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and other electronics manufacturers. Although the company faces an intense competitive landscape, it should succeed in the coming years as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

Skyworks Solutions reported solid fiscal first-quarter results and provided investors with a nice outlook for the March quarter and hinted at decent growth in the second half of calendar 2022. We saw few signs of underperformance at Apple (the company's largest customer) in the near-term and little indication that Apple is seeking to displace Skyworks in radio frequency, or RF, chip content in the near term or long term.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and other electronics manufacturers. Although the company faces an intense competitive landscape, it should succeed in the coming years as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

We maintain our fair value estimates of $210 for narrow moat Skyworks and $190 for no moat Qorvo after Bloomberg reported that Apple is hiring engineers for an office in Irvine, California to develop wireless chips which might displace radio frequency, or RF, chips supplied by firms such as Skyworks and Qorvo. Apple made up 30% of Qorvo's revenue in fiscal 2021 and 59% of Skyworks' sales in fiscal 2021, so it would be a crushing blow if Apple were to entirely abandon either RF supplier. However, Apple's wireless development plans aren't a clear-cut sign to us that either Skyworks or Qorvo are on the chopping block- certainly not in the near term but perhaps not in the long term either.

Narrow-moat Skyworks Solutions reported solid fiscal fourth-quarter results and provided investors with a healthy outlook for the December quarter that was in line with our expectations and was more upbeat than the forecast provided by the company’s rival, Qorvo, earlier this week. Qorvo appears to be a bit hampered by its exposure to Chinese Android smartphone makers, as well as supply constraints, whereas Skyworks’ excellent execution appears to be keeping the company above the fray. We raise our fair value estimate to $210 from $200 and still view shares as undervalued.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and other electronics manufacturers. Although the company faces an intense competitive landscape, it should succeed in the coming years as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.