Skyworks Stock Report

Skyworks (SWKS) has been on quite a run lately. It just hit a 52 week high of $82.78 before closing at $80.86. That is the price that StockUniverse “bought” a 100 shares for the Shooting Stars Portfolio. Skyworks hit a 52 week high today because it destroyed earnings estimates on Thursday. Earnings for the quarter shot up 88% to $1.26 for the 9th consecutive quarter of accelerating growth. That is what a shooting star is all about. Earnings estimates were beaten by 7 cents. Revenue rose past consensus estimates of $773.6 million to $805.5 million.

The company makes analog and mixed signal semiconductors. Its plethora of products include amplifiers, attenuators, battery chargers, power management devices, detectors, filters, hybrids, isolators, circulators, mixers, and modulators. These can be found in such areas as broadband, GPS, Wireless infrastructure, GPS, networking, smart phones, and tablet applications.  The highest profile products are chips for Apple iPhones. Thus, the recent roll-outs of the IPhone 6 and iPhone 6 Plus helped considerably in the quarter. The Samsung GS5 also helped.  SKWS even declared $.13 dividend that is payable on March 3rd.

As can be seen by the chart below, the stock is far from undiscovered. We are going to buy here as momentum continues but could also add to our position on any weakness.


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