Summary
Skyworks Solutions reported its fiscal Q3 results.
The company beat on EPS and revenue, guided higher, and increased dividends. The stock went down 5%.
The company looks more than undervalued, with just a 13 P/E ratio and 30% earnings growth.
The sell-off is not justified and presents a solid buying opportunity.
Skyworks reports stellar Q3 results, analysts raise targets, the stock goes down
On July 19, Skyworks Solutions (SWKS) reported its third-quarter results for FY 2018. The results turned out to be better than expected, as the company beat on EPS by 2.5% and on revenue by 1%, despite the headwinds in the company's business.
Notably, most major analysts raised their price targets after the Q3 report. Thus, Needham hiked its target from $110 to $118, maintaining a buy rating. Craig Hallum increased the target for SWKS from $115 to $120, also with a buy rating. The targets also went up at Morgan Stanley (NYSE:MS), UBS (NYSE:UBS), Cowen, Loop Capital and others. The average price target now amounts to about $117, about 15% higher than the stock price before Friday open.
