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Why Skyworks Solutions Is Up 44% So Far This Year

What happened

Skyworks Solutions' (NASDAQ: SWKS) stock price has climbed 44% so far in 2017, according to data provided by S&P Global Market Intelligence, after the Massachusetts-based semiconductor manufacturer beat analysts' estimates for the first three quarters of fiscal 2017.

So what

Investors boosted Skyworks' share price in January after the company reported revenue of $914 million and earnings per share of $1.61 for its fiscal Q1. Those revenues were actually down 1.3% year over year, and net income was down just over 3%, but both figures were higher than analysts' consensus estimates, and investors pushed the stock price up nearly 23% that month. Investors were also pleased to see the company launch a new $500 million share-repurchase plan to replace its earlier $400 million plan.

Image source: Getty Images.

The company again beat the analysts' earnings consensus in its second quarter: Skyworks reported non-GAAP EPS of $1.45 versus the consensus forecast of $1.40.

Shares lost some of their gains going into June and early July, but then spiked again after the company's fiscal Q3 report. Revenue that quarter jumped 20% year over year to $901 million, and non-GAAP EPS popped by 27% to $1.57. The company also increased its quarterly dividend by 14%, which helped push the company's share price higher. 

Now what

Skyworks has forecast that its revenue will climb 17% year over year in its fiscal fourth quarter, which would amount to a record $980 million, and non-GAAP EPS is expected to land at $1.75. If it hits those targets, investor sentiment should remain optimistic. If all that weren't enough, the company still has $1.4 billion in cash, and no debt -- two factors that should help keep its investors even happier as it to continues to to grow. 

Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Skyworks Solutions. The Motley Fool has the following options: short November 2017 $95 calls on Skyworks Solutions and short November 2017 $92 puts on Skyworks Solutions. The Motley Fool has a disclosure policy.