Skyworks Solutions Inc (NASDAQ: SWKS) stock fell over 5% in the opening session in today’s trade on July 20th, 2018 (as of 9:38 AM GMT-4; Source: Google finance)
On the other hand, the company has expanded gross margin to 50.9%, up 20 basis points both sequentially and year-over-year. The company has posted the third quarter cash flow from operations of $258 million and capital expenditures of $191 million.
The company’s board has declared a cash dividend of 38 cents a share, which is a 19% rise. The dividend is payable on Aug. 28 to shareholders of record on Aug. 7. The company continue to deploy the cash to create shareholder value, by returning approximately $300 million during the third quarter through share repurchases and dividends.
SWKS expect to end the fiscal year with mid-single-digit revenue growth, greater than a 10% earnings per share increase and record cash returns. For the fourth fiscal quarter, the company expect revenue to be up 11% to 13% sequentially or $1 billion at the midpoint. SWKS expect further gross margin expansion with fourth quarter gross margin between 51% and 51.5%. The company expect operating expenses in the fourth quarter of $135 million. The company expect about $4 million in other income, a tax rate of 9% and a diluted share count of 182 million shares. Accordingly at the midpoint of these ranges, the company has planned to deliver diluted earnings per share of $1.91, up 16% sequentially.
During the third quarter, SWKS commenced production of access solution for Cisco, capture content and Linksys new dual-band mesh networks ramped connectivity engines for Amazon’s 4K Fire TV, a leading voice enabled streaming media platform. The company has partnered with Sierra Wireless on LTE CAT-12 data cards for M2M applications, deployed networking solutions supporting AT&T DirecTV gateway, extended our footprint across Nest home automation platforms. Further, SWKS has enabled LTE telematics at TM and BMW and we introduced high precision GPS functionality, improving ride sharing, mobile payment and fleet management services. The company has also secured strategic flagship wins at Huawei, Samsung, Oppo, Vivo, LG and Nokia. And then the infrastructure markets, SWKS has powered massive MIMO solutions for a leading European base stations supplier.