Skyworks Stock Sinks After Chipmaker Lowers Outlook For Current Quarter

Skyworks Solutions, Inc. (SWKS) stock fell on Wednesday after the company missed Wall Street's targets for its fiscal second quarter outlook.

Skyworks Stock Sinks After Chipmaker Lowers Outlook For Current Quarter

Skyworks Solutions (SWKS), a chipmaker, met Wall Street targets for its fiscal second-quarter but fell short of expectations for the current period. SWKS shares fell in extended trading.

Irvine, Calif. based company earned adjusted $2.02 per share on sales of $1.1 billion for the quarter ending March 31. This was in line with expectations. Skyworks' earnings dropped 23% year-over-year, while its sales fell 14%.

Skyworks expects adjusted earnings per share of $1.67 on sales of $1.075 billion for the current quarter. This is based on Skyworks' midpoint in its guidance. FactSet polled analysts who predicted earnings of $2.06 per share on $1.15 billion sales for the quarter ending June. Skyworks had earned $2.44 per share in the previous period on sales of $1.2 billion.

In a press release, Chief Executive Liam Griffin stated that despite a challenging macro-economic backdrop, our fundamentals remained strong. We had solid profitability and robust revenue generation in the second quarter.

He said, "At the highest level, we are driving efficiency and leveraging our world-class manufacturing capability, while leveraging leading-edge technology, to capture new business opportunities with an expanding group of customers."

SWKS Stock Retreats After Report

SWKS shares fell 4.8% in after-hours trades on the stock exchange today to close at 100.21. SWKS closed Monday's regular session at 105.24, up 1.1%.

Skyworks manufactures wireless networking chips. It manufactures analog and mixed-signal chips for aerospace and defence, automotive, broadband infrastructure, connected homes, industrial, smartphones, and other markets.

Amid weak demand, most semiconductor stocks that are exposed to the PC and smartphone markets have given lower forecasts for the quarter ending June. Other companies included Advanced Micro Devices, Cirrus Logic, Qorvo and Qualcomm.

SWKS is ranked No. IBD Stock Checkup shows that 12 of the 30 stocks within IBD's semiconductor industry group are listed. Skyworks Solutions' IBD Composite rating is 73 out 99.

IBD Composite Rating is a combination of fundamental and technical metrics that helps investors assess a stock. Composite Ratings of 90 and above are the best growth stocks.