Kaufman Bros. Cuts Price Target on Skyworks Solutions (SWKS) Following Weak Guidance
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Price: $67.73 -2.71%
Rating Summary:
19 Buy, 26 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
19 Buy, 26 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Kaufman Bros. is maintaining its Hold rating on shares of Skyworks Solutions (NASDAQ: SWKS) while lowering its price target from $26 to $21.
The company reported its Q4 results with earnings of $0.54 per share on $402 million in sales, slightly topping both the firm's and Streets estimates. The firm notes that upside was driven by 35 percent growth quarter over quarter in its Linear Products division and at Samsung, HTC and ZTE on the handset side. Gross margins did fall 28 bps quarter over quarter to 44.7 percent.
Management offered weak Q1 guidance with earnings expected to be $0.50 per share on $390 million in sales, well below the consensus of $0.54 on $416 million in sales. Gross margin is also expected decline to 44-44.5 percent as a result of lower revenue run rates. Kaufman blames the weak guidance on pockets of weakness in the industry for the Android platform.
To go inline with the company's new guidance, the firm is lowering its FY12 EPS estimate from $2.14 to $1.90 and its sales estimate from $1.7 billion to $1.54 billion.
For more ratings news on Skyworks Solutions click here and for the rating history of Skyworks Solutions click here.
Shares of Skyworks Solutions closed at $20.50 yesterday.
The company reported its Q4 results with earnings of $0.54 per share on $402 million in sales, slightly topping both the firm's and Streets estimates. The firm notes that upside was driven by 35 percent growth quarter over quarter in its Linear Products division and at Samsung, HTC and ZTE on the handset side. Gross margins did fall 28 bps quarter over quarter to 44.7 percent.
Management offered weak Q1 guidance with earnings expected to be $0.50 per share on $390 million in sales, well below the consensus of $0.54 on $416 million in sales. Gross margin is also expected decline to 44-44.5 percent as a result of lower revenue run rates. Kaufman blames the weak guidance on pockets of weakness in the industry for the Android platform.
To go inline with the company's new guidance, the firm is lowering its FY12 EPS estimate from $2.14 to $1.90 and its sales estimate from $1.7 billion to $1.54 billion.
For more ratings news on Skyworks Solutions click here and for the rating history of Skyworks Solutions click here.
Shares of Skyworks Solutions closed at $20.50 yesterday.
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