Skyworks Solutions Inc (SWKS) Stock Sinks Despite Q3 Earnings Beat

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Skyworks Solutions Inc (NASDAQ:SWKS) stock was down on Friday after the company released its earnings report for its fiscal third quarter of 2016.

Skyworks, SWKS stockSkyworks reported operating income of $274.7 million with earnings per share of $1.24 for its third fiscal quarter of the year. This is down from the $295.4 million in operating income and earnings per share of $1.34 that it reported during the same time last year. However, it came in 3 cents above Wall Street’s estimate for the quarter.

Skyworks reported revenue for its fiscal third quarter of 2016 was $751.7 million. The company reported revenue of $810.0 million in the third fiscal quarter of 2015. Analysts were expecting SWKS to report revenue of $750.22 million in it’s most recent quarter.

“Based on our broad market traction and new program ramps as well as analog and mixed signal content gains, we expect a strong second half of 2016 with further operational improvements,” Donald W. Palette, Skyworks’ Executive Vice President and Chief Financial Officer, said in a statement.

SWKS’ outlook for its fourth fiscal quarter of 2016 includes revenue of $831 million and earnings per share of $1.43. Wall Street is expecting the company to report revenue of $831.15 million and earnings per share of $1.42 for that quarter.

Skyworks’ Board of Directors announced a new quarterly cash dividend of 28 cents per share for shareholders on record as of August 4, 2016. The dividend will be payable on August 25, 2016 and is a two-penny increase over the previous quarterly dividend of 26 cents per share.

The company’s Board of Directors also announced a new stock repurchase program of $400 million. This replaces the previous program announced on November 10, 2015 and will continue until July 19, 2018.

SWKS shares were down 8% as of Noon Friday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/skyworks-swks-stock/.

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