Hot Tech stock to watch: Skyworks Solutions Inc (NASDAQ: SWKS)

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Skyworks Solutions Inc (NASDAQ: SWKS) stock rose over 2% on 5th May, 2020 pre market session (as of 8:06 am GMT-4 ; Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. The company has reported fiscal second-quarter net income of $181.1 million compared to $214 million, in the year-ago period. The company has generated second fiscal quarter cash flow from operations of $280 million and incurred capital expenditures of $60 million resulting in $220 million of free cash flow on $766 million of revenue translating into a strong free cash flow margin of 29%.

Further, during the March quarter, the company had expanded the engagement with leading customers securing key design wins across numerous applications from the mobile phone to wireless infrastructure, IoT, automotive, machine-to-machine, and medical applications. In mobile, the company is leveraging thr Sky5 platform across multiple flagship 5G launches including Samsung, Oppo, Vivo, Xiaomi and other Tier 1 players and expanding the technology reach across the customized Diversity Receive platforms with new 5G-centric solutions driving sharp gains in design win count. In IoT, the company is supporting high-performance 5G and Wi-Fi enabled tablets specifically developed for health, safety, and telemedicine applications. Across mobile operators, the company is powering 5G hotspots with Verizon and AT&T supporting the expanding work-from-home trend. The company is extending the market leadership in Wi-Fi 6 with home and enterprise gateways at Cisco. In the infrastructure space, the company is supporting 5G Massive MIMO and small cell base station deployments across the U.S., Europe, and Japan and in automotive, the company is accelerating connectivity content with leading brands including Volkswagen, Renault, Hyundai, and Nissan.

SWKS in the second quarter of FY 20 has reported the adjusted earnings per share of $1.34, beating the analysts’ estimates for the adjusted earnings per share of $1.34. The company had reported 5 percent fall in the adjusted revenue to $766.1 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of $765.9 million.

Additionally, the company has paid $75 million in dividends and repurchased 3.2 million shares of the common stock for a total of $284 million. the company has also declared a cash dividend of $0.44 per share for Q3. Skyworks expects adjusted third-quarter earnings of $1.13 a share at the midpoint of a revenue range of $670 million to $710 million.

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