Analysis of Profitable Investment in Skyworks Solutions Inc
Skyworks Solutions Inc. For the second quarter of 2017 increased by $ 10.3 million compared to the previous quarter and by $ 149.1 million compared to the same period last year, amounting to $ 900.8 million, which is better than the forecast value of $ 890.5 million. Quarterly net profit increased To $ 246.2 million from $ 224.9 million, and earnings per share (EPS) was $ 1.57, falling below expectations of $ 1.75. Yield of the next dividend will be 1.21%. The following financial statement results will be issued on 01.11.2017, where it is forecasted that the company's revenue will increase to $ 980.6 million, and EPS will be $ 1.75.
Image Credit: Skyworks Solution Inc
The company's revenues are growing amid strong demand for products being developed. Strong growth was shown by the implementation of microchips for Chinese smartphones, such as Huawei, as well as solutions for virtual assistants and smart homes. Increasing interest in the introduction of Wi-Fi, LTE and ZigBee. Currently, 27% of the corporation's revenue provides revenue not from mobile applications. It is assumed that in the long term this figure can become even greater due to the growing adoption of Internet technologies of things (IoT). To date, the company has begun mass deliveries of modules based on 802.11p Wi-Fi standards, providing communication between vehicles. Thus, Skyworks Solutions Inc. Is on the path of a potentially promising market, which, according to various data, can reach more than $ 22 billion in revenue over the next five years. The company's management forecasts that in the next quarter, revenue will grow by 17% compared to the same period last year, while gross profit and operating margin will also continue to grow. At the same time, Skyworks Solutions Inc. Continues to work on the 5G network and introduce it into their new technologies.
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Share price Skyworks Solutions Inc. As a whole has an upward trend, which is confirmed by the presence of a 20-day exponential moving average over 50-day, but after the publication of the latest financial statements on July 20, 2017 quotes are mostly in the side range. Given the good results of the latest financial statements and expectations for their improvement, the development of new advanced technologies and the continuous growth in demand for the company's products, we will assume about further increase in the price of Skyworks Solutions Inc. shares in the next two months.
After a symbolic negative correction of the price of the financial instrument to the level of $ 101.80, we will place a warrant for the purchase. Take profit is set at $ 107.20, and Stop loss is $ 99.10.