Chipmaker Skyworks Solutions (SWKS) is expected to post its third quarter in a row of declining sales and earnings when it reports fiscal first-quarter results after the market close Thursday.
Analysts polled by Thomson Reuters expect Woburn, Mass.-based Skyworks to earn $1.58 per share excluding items, down 1.3% year over year, on sales of $903 million, down 2.6%, in the December quarter.
Skyworks is expected to return to growth in the current quarter, its fiscal Q2. Wall Street is modeling Skyworks to earn $1.39 a share ex items, up 11%, on sales of $818 million, up 5.5%, in the March quarter.
Oppenheimer analyst Rick Schafer on Monday reiterated his outperform rating and 100 price target on Skyworks stock.
IBD'S TAKE: Skyworks Solutions stock has an IBD Composite Rating of 73, meaning it has outperformed 73% of stocks in key metrics over the past 12 months. But it ranks No. 19 out of 39 stocks in IBD's Electronics-Semiconductor Manufacturing industry group. To see which stocks lead the group, visit the IBD Stock Checkup.
Skyworks stock fell 1.8% to 76.89 on the stock market today, and it's traded in a narrow range the past three months.
Schafer expects Skyworks to beat consensus for Q1 and guide to in-line or better results for Q2.
"Seasonally, we don't expect a repeat of 2016 which saw heavy iPhone 6S inventory overbuild weigh on results," he said in a research report. "Following March guidance, we expect investors to begin to position themselves for the iPhone 8 release in September, where we see Skyworks extending its record of content gains."
Apple (AAPL) is Skyworks' top customer, accounting for about 40% of revenue, Schafer said.
"We believe Skyworks' growth trajectory remains on track to benefit from increasing RF (radio frequency) complexity, with relatively easy year-over-year comparisons heading into calendar 2017," he said.
Skyworks makes analog semiconductors for wireless networking. Its chips are used in communications, automotive, industrial, medical, military and other applications.
