This Beaten-Down Tech Stock Is a Screaming Buy
Skyworks Solutions (NASDAQ: SWKS) was hit by the weak demand for smartphones in China. Shares of the chipmaker fell 10% following the release of its fiscal 2022 second-quarter results (for the three months ending April 1, 2022) on May 3.
Though Skyworks -- which counts the likes of Apple (NASDAQ: AAPL), Samsung, and Xiaomi as customers -- delivered decent fiscal Q2 numbers, its outlook wasn't up to the mark, which led investors to press the panic button. However, a closer look at Skyworks' results indicates that investors may be overreacting to its guidance. Let's see why.
Skyworks Solutions' revenue increased 14% year over year last quarter to a record $1.34 billion, while adjusted earnings were up 11% to $2.63 per share. The numbers were in line with Wall Street's expectations. Skyworks management credited the double-digit increases in its top and bottom lines to an increase in chip demand from top smartphone OEMs (original equipment manufacturers), as well as its efforts to diversify the customer base and reach more markets.
Source Fool.com
