Analysts Boost Targets After Skyworks' Outlook 'Trounces' Views

Skyworks Solutions (NASDAQ: SWKS) closed up 14 percent Friday after posting a strong fiscal third quarter and outlook.

Analysts generally boosted their earnings estimates and price targets on the company, which makes analog semiconductors for a wide array of markets.

Skyworks' third quarter revenue guidance "trounced expectations" on the Street, D.A. Davidson's Thomas Diffely said, noting the company's ties with major handset manufacturers as well as to the continuing construction of 4G mobile communications network in China is driving growth. Diffely maintained a Buy rating and raised his target to $65 from $55

The company's revenue guidance for the current period of $680 million is 12 percent above the Wall Street consensus. "That implies a 15.8 percent growth rate" over the second quarter, Raymond James J. Steven Smigie said in a note.

Smigie's optimistic the company can reach its goal of $5 a share in annual earnings within a couple of years. Wall Street expects fiscal 2014 earnings of $2.96 a share on revenue of $2.16 billion.

Skywork's 66 percent stake in a joint venture with Panasonic to produce filters for the GPS, wi-fi and cellular markets is expected to close in the third calendar quarter.

J.P. Morgan's Alex Gauna said the venture should bolster Skyworks gross margin and help its outlook. Gauna maintained an Over Weight rating, raising his target to $60 from $50.

Skyworks closed at $52.87, up 14 percent after touching a 52-week high earlier Friday of $53.45.