WASHINGTON (dpa-AFX) - Shares of Skyworks Solutions Inc. (SWKS) gained almost 9 percent in extended trades Tuesday after the analog semiconductor maker's revenue and adjusted earnings per share for the second quarter beat analysts' expectations and it forecast financial results for the third quarter above Street estimates.
The company reported a 25 percent increase in profit for the second quarter from last year on double-digit revenue growth and improved margins.
David Aldrich, president and chief executive officer of Skyworks said, 'Skyworks exceeded guidance across all key metrics last quarter and is set to substantially outpace the broader semiconductor industry as we capitalize on increasing analog system complexity driven by the Internet of Things.'
Woburn, Massachusetts-based Skyworks Solutions' net income for the second quarter was $76.9 million or $0.40 per share, up from $61.7 million or $0.32 per share in the same period last year.
Adjusted net income for the quarter were $118.6 million or $0.62 per share, compared to $91.9 million or $0.48 per share in the prior-year quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter grew 13 percent to $481.0 million from $425.2 million in the year-ago period. Analysts had a consensus revenue estimate of $470.25 million.
Adjusted gross margin for the quarter was 44.7 percent, compared to 42.2 percent in the year-ago period. Adjusted operating margin was 27.1 percent, compared to 23.4 percent in the prior-year quarter.
Looking ahead to the third quarter, Skyworks forecast 35 percent year-over-year increase in adjusted earnings to $0.73 per share on a 23 percent year-over-year increase in revenues to $535 million. Analysts currently expect the company to report earnings of $0.63 per share for the quarter on revenues of $488.16 million.
Donald Palette, vice president and chief financial officer of Skyworks said, 'As our performance demonstrates, Skyworks is executing to our strategy of gaining semiconductor content through system-level integration, diversifying into adjacent vertical applications and relentlessly pursuing operational excellence.'
Skyworks' board of directors declared its first cash dividend of $0.11 per share of the company's common stock. The dividend is payable on May 22 to stockholders of record at the close of business on May 13.
SWKS closed Tuesday's regular trading session at $37.96, up $0.94 or 2.54 percent on a volume of 6.63 million shares. In after-hours, the stock further gained $3.34 or 8.80 percent to $41.30.
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