Skyworks Solutions Stock Forum

Despite more capital being deployed at Skyworks Solutions, returns and sales have fallen. If these trends persist, it may be wise to consider other options.

The slower EPS growth compared to the share price growth suggests that market participants hold the company in higher regard. Despite the recent sell-off, long term investors have made a 10% return each year over five years, indicating a potential opportunity for growth.

Despite a lower growth outlook, the company's stock is trading at a similar P/E to the market, suggesting higher investor optimism than analysts. However, an alignment of P/E ratio to growth outlook could disappoint existing shareholders.

Skyworks Solutions shares are undervalued, pointing to a buying opportunity. The forecasted company growth is not reflected in the share price. The capital structure and management track record should also be considered before investing.

Company's dividend seems sustainable, backed by profit and cash flow. Moderate earnings growth with lower payout percentage indicates balance in returns and investment in growth. Worth investors’ attention.

Core points:
1. Performance and Profitability: The company reported $1.15 billion in revenue, with 60% coming from the mobile phone business. While revenue from the largest customer increased, weak demand for Android devices offset some gains. Gross profit was $577 million, but underutilization of production capacity led to a decline in gross profit margin.
2. Inventory and Demand Challenges: The company faced inventory management...

Skyworks Solutions and PayPal demonstrate why a big decline means different things across industries right now, Jim Cramer said.
PayPal should’ve been the winner between the two, but it continued to fall based on its industry positioning, he explained.
Whether a huge decline in a stock is a buying opportunity or a major red flag largely depends on the industry right now, Jim Cramer said Wednesday.
That was...