Skyworks Solutions (SWKS) generated an unexpectedly high sales revenue of $956.8 million in the fourth fiscal quarter of 2020, the wireless chipmaker revealed in its earnings report.
While analysts projected earnings of $1.52 per share (resulting in total revenue of $842.4 million), Skyworks managed to achieve a revenue of $1.85 per share. The company’s earnings rose by 22% in Q4, while its sales figures soared by 16%.
While Skyworks’ stock price declined following the release of its earnings report, the company expects to skyrocket its revenue yet again in the new fiscal quarter, with projected figures of $2.06 earnings per share and a total sales revenue of $1.055 billion.
Chief Financial Officer Kris Sennesael displayed confidence in Skyworks’ ability to meet its financial goals, explaining that content gains and new product releases are expected to fuel growth.
One of the factors that are expected to contribute to Skyworks’ rise in sales is the release of 5G wireless networks worldwide. This news has led to a surge in demand for the latest range of Apple smartphones and tablets, for which Skyworks supplies radio frequency and analog chips. Apple accounts for between 45% and 50% of Skyworks’ revenue.
