Skyworks Slumps Despite Price Target Upgrades
Skyworks fell nearly 8% in trading Friday afternoon even after Wall Street raised price targets after a strong quarter.
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Shares of Skyworks (
SWKS) - Get Report were falling sharply Friday even after the chipmaker reported better-than-expected fiscal second-quarter earnings that sparked price target upgrades by analysts.
Shares of the Irvine, Calif., company fell 7.79% to $182.46 at last check.
For the quarter ended April 2, Skyworks nearly doubled its earnings to $325 million, or GAAP earnings of $1.95 a share and adjusted earnings of $2.37 per share. Revenue rose 53% to $1.17 billion. Analysts polled by FactSet were expecting
GAAP earnings of $2.04 a share, or an adjusted $2.35 a share, on revenue of $1.15 billion.
Week In Review: Design, Low Power
Circuit simulation speedup; DSP IP for embedded vision; edge AI startup; clock distribution; Skyworks buys Silicon Labs’ infrastructure, auto biz.
Skyworks Solutions will acquire
Silicon Labs’ Infrastructure & Automotive (I&A) business for $2.75 billion cash. The transaction includes Silicon Labs’ power/isolation, timing and broadcast products, intellectual property, and approximately 350 employees. Silicon Labs said it will focus on its IoT business, which includes integrated hardware and software wireless platforms for multiple protocols.
Skyworks develops analog semiconductors for wireless networking across a broad range of markets. “This acquisition will broadly expand our capabilities across high-growth end markets including automotive, communications and industrial, creating new and highly compelling opportunities for Skyworks,” said Liam K. Griffin, president and CEO of Skyworks.