Skyworks Solutions Q1 Earnings Preview

Skyworks Solutions Inc SWKS is scheduled to report fiscal Q1 results after the market close Thursday.

Analysts expect the company to report revenue of $773.59 million and EPS of $1.19.

Oppenheimer analyst Rick Schafer raised estimates to $1.20 EPS on revenue of $780 million ahead of the earnings release.

Schafer added that Skyworks “likely tracked to modest F1Q upside, and we see a positive bias to F2Q consensus. Sustained iPhone 6 demand coupled with strong China LTE builds and initial GS6 orders inform our opinion here. Our new $740M F2Q revenue estimate represents a 5 percent Q/Q drop vs. our prior -9 percent Q/Q drop.”

“Last quarter’s 18 percent dividend hike and subsequent $300M share buyback authorization give us increased confidence in management's capital allocation and return model. Our CY15/CY16E EPS jump to $4.85/$5.30 from $4.59/$5.00,” according to Schafer.

Oppenheimer maintained an Outperform rating and $85 price target.

Bank of America also set an $85 price target on December 19 for the stock based on “improving industry fundamentals given consolidation, new product ramps and superior growth potential, increased China exposure and diversified high performance analog business."

Bank of America analyst Vivek Arya also named the stock a Top Pick.

Shares of Skyworks Solutions are up 4.64 percent over the past month.

The stock recently traded at $78.32, up 1.47 percent.