Yesterday was a tough day on Wall Street as earnings season jitters got the best of some investors.
The Dow Jones Industrial Average finished down nearly 200 points, or 1%, and the tech-heavy Nasdaq Composite fell over 1.6%. Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) all fell today. The biggest loser by far was Nokia Corporation (ADR) (NYSE:NOK), which plunged 12% after disappointing on Q2 earnings.
But after the closing bell, we started to see some fascinating after-hours activity. One of my favorite semiconductor stocks just reported earnings, and judging from the initial reaction, it did quite well. Let’s take a look:
Skyworks Solutions Inc (NASDAQ:SWKS) reported robust sales and earnings growth for the fiscal second quarter. For starters, second-quarter revenue surged 58% year over year to $762 million. This surpassed analysts’ estimates of $751.83 million in revenue.
Over the same period, adjusted operating income skyrocketed 99% to $258.9 million, or $1.15 per share. Not only did this beat analysts’ earnings estimates of $1.13 per share, it topped Skyworks Soluntions’ own guidance of $1.12 EPS.
Plus, there’s plenty more excitement ahead for SWKS. For the third quarter, management is looking for Skyworks Solutions to bring in $800 million in revenue. This is above the Street top-line forecast of $781.81 million.
In the meantime, Skyworks’ board of directors has declared a cash dividend of 13 cents per share. Shareholders of record on May 14 will receive the dividend on June 4. At current prices, Skyworks has a modest 0.5% annual dividend yield.
While the dividend may not be enough to write home about, SWKS sales and earnings momentum certainly are. For this reason, SWKS is an A-rated “strong buy” in Portfolio Grader.
A Dozen Semiconductor Stocks to Sell
However, not all semiconductor stocks are doing as well as Skyworks Solutions. As we saw yesterday, things have gotten more volatile in the tech sector, and many semiconductor companies have been knocked down a peg or two.
Here are 12 “dime a dozen” semiconductor stocks that you should consider selling immediately:
| Symbol | Company Name | Quantitative Grade | Fundamental Grade | Total Grade |
| NASDAQ:AMD | Advanced Micro Devices, Inc. | F | D | F |
| NASDAQ:ATML | Atmel Corporation | D | C | D |
| NASDAQ:CREE | Cree, Inc. | F | D | D |
| NASDAQ:MCHP | Microchip Technology Inc. | D | C | D |
| NASDAQ:MRVL | Marvell Technology Group Ltd. | D | C | D |
| NASDAQ:MXIM | Maxim Integrated Products Inc. | D | C | D |
| NASDAQ:POWI | Power Integrations Inc | F | C | D |
| NASDAQ:SLAB | Silicon Laboratories | D | C | D |
| NASDAQ:SMTC | Semtech Corporation | D | C | D |
| NYSE:TER | Teradyne, Inc. | D | D | D |
| NASDAQ:VECO | Veeco Instruments Inc. | F | C | F |
| NASDAQ:XLNX | Xilinx, Inc. | D | C | D |
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
