New smartphones like Apple’s iPhone 12 family has sent Skyworks Solutions back into long-absent year-over-year growth. The company powers other connectivity applications like 5G network infrastructure, cars, and touchless digital payments.
Nicholas Rossolillo for The Motley Fool:
Wireless connectivity chip specialist Skyworks Solutions just put the wraps on its 2020 fiscal year, and it ended with a bang. Revenue increased by double-digit percentages, not just sequentially from the previous quarter during a typically busy late summer and early autumn period, but also year over year as the company starts to lap effects from the U.S.-China trade war. With lots of new 5G-enabled smartphones coming to market, I expect the company’s expansion to have some legs.
Skyworks’ revenue in fourth-quarter fiscal 2020 (three months ended Oct. 2, 2020) was $957 million, up 30% sequentially from the previous quarter and 16% year over year. Adjusted earnings per share increased 22% year over year to $1.85.
Management said demand for its connectivity chips ramped higher at the end of the period thanks to 5G demand, and momentum will carry into Q1 fiscal 2021 because of Tier-1 customers… At 29 times trailing 12-month free cash flow (basic profits measured as revenue less cash operating and capital expenses) and with $980 million in cash and equivalents and zero debt on the books, I remain bullish on this top semiconductor and 5G stock.
MacDailyNews Take: There’s only one Tier 1 customer: Apple.