Skyworks slips as dividend halt, chip selloff overshadow earnings beat

Skyworks Solutions

29/07/2026 17:49

** Chipmaker Skyworks Solutions' shares SWKS.O fall 2.6% to $62.97 amid a broader selloff in semiconductor stocks 
** SWKS posts Q3 adj EPS of $1.08 and revenue of $935 mln, both beating analysts' consensus estimates of $1.02 and $920.3 mln — data compiled by LSEG
** Growing demand for radio-frequency chips used in smartphones helped co beat results
** Co to halt quarterly dividend, launches $2 bln buyback as Qorvo QRVO merger advances
** "New capital allocation strategy post QRVO deal entails discontinuation of the quarterly dividend as the company focuses on deleveraging and share repurchases," TD Cowen analysts say 
** Several brokerages including J.P.Morgan, Morgan Stanley, BofA, Citigroup, TD Cowen and Stifel cut PT
** Morningstar sees rising memory-chip costs driving higher smartphone prices, potentially pressuring handset volumes in fiscal 2027 and beyond
** Three of 25 brokerages rate the stock "buy" or higher, 19 "hold" and three "sell" or lower; median PT is $70
** Including session's move, stock down 0.6% YTD, while broader chip index .SOX up nearly 50% 

 (Reporting by Anand Gopal in Bengaluru)
 ((anandgopal.r@thomsonreuters.com))