Skyworks Solutions Inc. diskutieren

... Let's get to Skyworks first. If you follow Skyworks or already have a position in Skyworks, you'll know it provided absolutely stunning earnings almost two weeks ago. The key was I already saw the writing on the wall and told my subscribers, "Skyworks' stock is at all-time highs with more room to run and more surprise to the upside in earnings with 5G coming to full fruition in 2021." (Read that subscriber article here) I wrote that on January 26th, two days before Skyworks issued that blowout report and upside guidance.

And surprise it did!

But what it really did was move my earnings estimates up from what I thought it could reach in 2021, and I even said in that same pre-earnings article, "...upward earnings revisions are more likely than the risk of downside revisions." I was already factoring in upside earnings and it still blew my expectations away.

Instead of earnings of $2.09 expected by consensus, the company reported $3.36! This immediately reset 2021 expectations. But then it followed it up by guiding for $2.34 in EPS instead of the Street's expectations of $2.09 for FQ2. But don't think $2.34 is where the company will report in another three months; it likely will be decently higher, and I would not be surprised to see $2.50+.


These crazy upward earnings revisions did so much for expectations that it brought 2023 expected earnings into 2021. That's phenomenal! September 2023 earnings estimates were for $10.07. Now 2021 estimates are for $10.27. That's called killing it and reward your shareholders.



(Source: Seeking Alpha analyst estimates from January 26, 2021)

I was originally targeting a 2021 share price of $200-$210 for my subscribers before earnings. That would have been a return of 27% at the midpoint of the target. Not bad, but not terribly exciting when you're competing with a 40% Nasdaq (COMP) return from 2020. But with the earnings revisions and mid-double digit growth on tap for most of 2021, not only does earnings boost the target but so does multiple expansion.

Because Skyworks is now growing at levels not seen since fiscal 2014, it deserves a higher valuation on top of the forward numbers. With revenue growth above 50%, a 24 forward P/E is more than justified - what it just was trading at before it blew out earnings. I expect earnings of around $12.50 in 2022 after a year of $10.80 in 2021. At $12.50 and a P/E of 24, we get a $300 target out to 2022. For 2021, I expect to see $260 based on the same valuation and a $10.80 earnings estimate. This is more like it - potential returns of 43% for 2020 even after the rally to $183, while 2022's target gives us a 65% return.
You're not too late to get into Skyworks; I foresee a lot more upside even after the crazy blowout it just had. You can read the full breakdown of valuations and what I think of 5G's impact on the company for the next year here. ...

Artikel von Joe Albano ohne Paywall:

https://seekingalpha.com/instablog/15511982-joe-albano/5553650-current-top-two-stock-picks-are-skyworks-and-fubotv