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Technology Stocks : SWKS - Skyworks Solutions, Inc (was AHAA) -- Ignore unavailable to you. Want to Upgrade?


To: All Mtn Ski who wrote (1353)7/11/2002 2:10:53 PM
From: The Ox  Respond to of 1698
 
Forward PE of 3 sounds about right.

:)



To: All Mtn Ski who wrote (1353)7/11/2002 2:12:27 PM
From: w0z  Read Replies (2) | Respond to of 1698
 
He also stated they wanted 15% or better operating margins, so 15% of $1 billion is $150 mill in net profits.

Wouldn't that be $150M in operating profit...not net profit? Unless they have some tax offsets. 15% net would be incredibly high but not impossible maybe for a short period of time.

In edit...I checked Intel's most recent quarter and they were around 7% net profit. Checked FY 2000 and they were at 35% net, so it is possible but we know what happened since then. Unless SWKS has some tax losses, you should figure net profit is about half of operating profit. Remember also that Intel's Gross Margins were over 60% at their peak and I don't know how SWKS might compare to that.