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   Technology StocksSWKS - Skyworks Solutions, Inc (was AHAA)

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From: mlc1783/9/2020 2:57:05 PM
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BARRON'S: 2 Chip Stocks to Buy After the Big Market Drop, According to an Analyst

By Tae Kim
March 9, 2020 2:34 pm ET

The recent market decline due to uncertainty over the coronavirus is providing attractive buying opportunities in the semiconductor sector, according to Wells Fargo Securities.

Chip stocks have tumbled, along with equity markets. The iShares PHLX Semiconductor ETF(ticker: SOXX), which tracks the performance of a widely followed semiconductor-sector index, has declined by about 14% over the past month, compared with the 16% drop for the S&P 500.

Wells Fargo analyst Gary Mobley on Monday reiterated his Overweight ratings for both Qorvo(QRVO) and Skyworks Solutions(SWKS). He noted both chip makers already modestly lowered their financial forecasts due to the coronavirus last week.

“Following a recent round of estimate cuts for QRVO & SWKS...we believe [next 12 months] estimates have been largely de-risked,” he wrote. “We suggest investors buy shares of QRVO & SWKS following the recent sell off.”

Qorvo shares were down 4.5% to $90.09, while Skyworks stock declined 6.7% to $89.27 on Monday afternoon. The chip companies make radio-frequency, or RF, semiconductors, which enable smartphones to communicate with wireless networks.

The analyst said the two companies are the “best-in-class” ways to play the growth in 5G smartphones as the amount of RF chip content is much higher in 5G phones than in the prior 4G models. He also thinks China may subsidize the cost of 5G handsets to boost demand and help its economy.

“We believe wider adoption of 5G...will drive [the] smartphone industry to transition to more global designs (which uses more expensive,” he wrote.

Wall Street analysts are mixed on Qorvo. About 54% have ratings of Buy or the equivalent on the stock, while 46% have Hold ratings, according to FactSet. Views about Skyworks are similar, with 55% at Buy and 42% at Hold.

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From: mlc1783/9/2020 4:17:33 PM
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Smartphone sales are collapsing in China. They could plunge 40% in Q1

By Sherisse Pham, CNN Business

Updated 5:42 AM ET, Fri February 28, 2020

Hong Kong (CNN Business)China's smartphone market, the biggest in the world, is set for a massive plunge due to the novel coronavirus outbreak.

Smartphone shipments in China will likely fall 40% in the first quarter of 2020 compared with the same period last year, according to a new report from research firm IDC.

That means Chinese consumers will buy 33 million fewer phones in the first three months of the year, according to Will Wong, an analyst with IDC.

When IDC updated its forecast last year, "we were only expecting a 5% drop" in the first quarter of 2020, Wong said.

"Even with a potential March recovery it will still be difficult to reach last year's levels" for the first quarter, he added.

There will also be knock-on effects for global smartphone shipments, which IDC forecasts will decline 10.6% in the first half of 2020, compared to the same period last year.

Business in China ground to a halt when the outbreak accelerated late last month. Companies have been struggling to return to normal, as hundreds of millions of people in China remain under travel restrictions.

"Component shortages, factory shutdowns, quarantine mandates, logistics, and travel restrictions will create hindrances for smartphone vendors to produce handsets and roll out new devices," IDC analyst Sangeetika Srivastava said in a press release.

Sales should "stabilize" later in the year as 5G smartphones roll out, provided the outbreak subsides, Srivastava added.

Apple (AAPL) warned investors this month that the coronavirus outbreak is hurting its business more than previously expected by limiting how many devices it can make and sell in China.

In an investor update, Apple said it no longer expects to meet the revenue guidance it provided last month for the upcoming March quarter.

"Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated," the company said.

Huawei will also likely be hit hard. The Chinese tech company is the top selling smartphone brand in China, with just over 38% market share last year, according to IDC.

A Huawei spokesperson declined to comment, saying the company does not speculate on market performance.

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From: mlc1783/9/2020 4:30:16 PM
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This is from the Motley Fool. The plunge in smartphone sales is much greater than I thought. No doubt this can affect Skyworks.
Apple's iPhone Sales Plunged 61% in China in February

Rich Duprey The Motley Fool

The COVID-19 coronavirus outbreak hit China's smartphone market hard in February: Device shipments there fell nearly 55% for the month. But few smartphone manufacturers fared worse than Apple (NASDAQ: AAPL) -- iPhone sales in China plunged 61%.

Data from the China Academy of Information and Communications Technology (CAICT) showed Apple's smartphone shipments tumbled from 1.27 million in February 2019 to just 494,000 units last month. While other manufacturers lost more unit sales, none suffered a percentage decline as large as Apple's.

Reuters reported that CAICT figures indicate there were 6.34 million smartphones shipped in China in February, 7.66 million fewer than a year earlier, for a drop of 54.7%. Huawei Technologies and Xiaomi accounted for most of that number, as their combined device shipments fell from 12.72 million in February 2019 units to 5.85 million last month, a 46% contraction.

However, on a month-to-month basis, Apple just saw three-quarters of its business in China evaporate. In January, it shipped 2 million devices there. And again, in February, the figure was 494,000. Analysts had previously estimated shipments would plunge by 40% in the first quarter due to businesses and industries being shut down in an attempt to stem the spread of SARS-CoV-2, upsetting the supply chain.

Apple's primary iPhone manufacturer, Foxconn, said last week that it anticipated getting back to full production by the end of March, but the coronavirus-related disruption threatened to delay production of Apple's new low-cost iPhone.

Apple also said the COVID-19 outbreak and the resulting delays and supply chain issues meant that it would not meet its quarterly revenue guidance of $63 billion to $67 billion.

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From: mlc1786/5/2020 3:26:37 PM
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SWKS has exceeded pre-pandemic levels. New all time high today.
AAPL made an all time high today too.
QRVO - not yet.

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From: mlc1787/29/2020 7:53:20 PM
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Skyworks' main competitor Qorvo delivers blowout results for the June qtr and gives blowout guidance.
Non-GAAP EPS came in at $1.50/sh.
Actual Revenues: $787.5 million.

Analysts had estimated an avg earnings of $1.13 per share for the June qtr
on revenues of $730 million.

Qorvo's guidance for the Sept 2020 qtr:
$925 to $955 million.
Non-GAAP EPS of $1.90 / sh

Analyst estimates for the Sept 2020 qtr:
Revenues $803 million
EPS $1.44

Obviously the latest guidance far exceeds analyst estimates.
QRVO is up $8.12 in after hours

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From: mlc17812/24/2020 8:06:33 PM
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Skyworks price target raised at Cowen on 5G growth, upside Apple content gains
Dec. 22, 2020 11:46 AM ET Skyworks Solutions, Inc. (SWKS) By: Brandy Betz, SA News Editor

Noting that the 5G growth story is still in its early innings, Cowen maintains an Outperform rating on Skyworks Solutions (NASDAQ: SWKS) and raises the price target from $160 to $185.

Analyst Karl Ackerman writes that "investors are missing content gains at Apple and upside to production" with the content gains potentially "much higher than current expectations.

"The analyst notes that the broader industry is undergoing the "once-in-a-decade shift to 5G.

"Skyworks shares are up 2% to $150.71.

Skyworks derives more than half of its revenue from Apple and is among the supply chain names moving on Apple's reported self-driving vehicle efforts.

Previously: Apple said to be pushing ahead on self-driving car in challenge to Tesla (Dec. 21 2020)

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From: mlc1781/29/2021 9:56:29 AM
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Skyworks Pops 15% After-Hours As 1Q Sales Beat Analysts’ Estimates
Fri, January 29, 2021

Shares of Skyworks Solutions gained by around 15% in Thursday’s extended market trading session after the semiconductor company posted record revenues in 1Q21.

The company’s revenue in 1Q jumped 69% to $1.5 billion year-on-year, beating analysts’ estimates of $1.06 billion. Skyworks (SWKS) recorded earnings of $3.36 per share that came in ahead of analysts’ expectations of $2.08 per share.

Skyworks CEO Liam K. Griffin said, “Skyworks delivered all-time record quarterly results, leveraging our expansive technology reach. Demand for our proven solutions continues to accelerate across a growing set of customers and end markets, powering the world’s most impactful use cases, from 5G mobile platforms to IoT, wireless infrastructure, autonomous transport and machine-to-machine installations.”

“Importantly, the multi-year wireless transition is now underway, creating a burgeoning set of new opportunities. With deep customer engagements, underpinned by decades of technology investments and scale, Skyworks is uniquely positioned to lead,” Griffin added.

Separately, the company also announced a share repurchase program worth $2 billion. Skyworks expects to fund the share repurchase through its working capital and as of Jan. 1, it had cash and marketable securities of $1 billion. The company will repurchase shares from time to time through Jan. 26, 2023. (See Skyworks Solutions stock analysis on TipRanks)

In the second quarter, Skyworks expects revenues to be between $1.1 billion and $1.2 billion. The company projects to post non-GAAP diluted earnings of $2.34 per share in 2Q.

Following the earnings results, Oppenheimer analyst Rick Schafer assigned a Hold rating on the stock.

“We attribute surprising upside to robust iPhone12 demand, where we estimate SWKS content up ~30%. Apple was a 70% customer in F1Q (from 60%). SWKS also accelerated Sky5 platform sales to Samsung and China ‘VOX’ OEMs [original equipment manufacturer],” Schafer wrote in a note to investors.

“We believe mgmt leveraged SWKS internal TC-SAW/BAW [surface acoustic wave and bulk acoustic wave] capacity to meet upside as demand signals strengthened into December. RF [Radio frequency] content/ complexity increases 5G/4G led by filters. We forecast 5G RF content CAGR of 10% over the next several years and see SWKS positioned to benefit.” the analyst added.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 13 analysts recommending a Buy and 7 analysts suggesting a Hold. The average analyst price target of $176.18 implies 10.3% upside potential to current levels.

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