Financial Data and Key Metrics Changes - Skyworks reported revenue of $1.046 billion for Q2 2024, with earnings per share of $1.55 and operating cash flow of $300 million, reflecting strong working capital management [7][14] - Gross profit was $471 million, resulting in a gross margin of 45%, which was down 140 basis points sequentially [13][14] - Operating income was $279 million, translating into an operating margin of 26.7% [14] Business Line Data and Key Metrics Changes - The mobile business accounted for approximately 66% of total revenue, down 19% sequentially, while broad markets represented about 34% of total revenue, up 1% sequentially [13] - The company reduced internal inventory by $91 million to $836 million, marking five consecutive quarters of reductions [14] Market Data and Key Metrics Changes - The mobile business experienced below-normal seasonal trends due to lower-than-expected end market demand, leading to excess inventory in the channel [9][19] - Broad markets showed modest sequential growth, indicating a potential recovery in certain segments [7][15] Company Strategy and Development Direction - The company aims to leverage connectivity technology across multiple growth segments, including edge IoT devices, automotive electrification, and AI infrastructure [10] - Skyworks is focusing on advanced RF solutions to address the increasing complexity of radio systems in vehicles, driven by the rise of software-defined vehicles and connected car technologies [10] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing weakness in certain end markets like infrastructure and automotive, but remains optimistic about long-term growth opportunities in automotive and AI workloads [9][11] - The outlook for Q3 2024 anticipates revenue of $900 million, with expectations of a sequential decline in the mobile business due to excess inventory clearance [15][16] Other Important Information - The company paid $109 million in dividends during Q2 2024, and cash balances grew to over $1.2 billion with $1 billion in debt, indicating a solid capital structure [14] - Management expects gross margin expansion in the remainder of 2024, driven by cost reduction actions and improved utilization rates [15][42] Q&A Session Summary Question: Excess inventory in mobile business - Management acknowledged that excess inventory has been a persistent issue, primarily affecting the mobile segment, and expects a sequential decline of 20% to 25% in Q3 due to inventory clearance [19][24] Question: Impact on second half of the year - Management indicated that they only guide one quarter at a time but expect most inventory clearance to occur in Q2, suggesting a return to normal revenue levels thereafter [23][24] Question: Content and program changes - Management noted a unique situation with their largest customer that affected expected content, leading to a projected decline in content by over 10% compared to the current phone model [26][27] Question: Recovery in broad markets - Management expressed optimism about growth in broad markets, particularly in automotive and industrial segments, despite some inventory challenges [52][55] Question: China mobile revenue - Management stated that China mobile revenue remains low but is improving, with expectations for meaningful growth in fiscal 2025 [58] Question: Android business outlook - Management indicated that the Android business is stabilizing and expects to see growth as end customer demand improves [49][61]

Skyworks Solutions (SWKS) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.97%. A quarter ago, it was expected that this chipmaker would post earnings of $1.95 per share when it actually produced earnings of $1.97, delivering a surprise of 1.03%.Over the last four quarters, the compa ...

Financial Performance - Net revenue for the three months ended March 29, 2024, was $1,046.0 million, a decrease of 9.3% compared to $1,153.1 million for the same period in 2023[9] - Gross profit for the six months ended March 29, 2024, was $926.8 million, down 20.5% from $1,165.0 million in the prior year[9] - Operating income for the three months ended March 29, 2024, was $189.2 million, a decline of 30.8% from $273.3 million in the same quarter of 2023[9] - Net income for the six months ended March 29, 2024, was $414.6 million, representing a decrease of 23.5% compared to $542.2 million for the same period in 2023[9] - Net revenue for the six months ended March 29, 2024, was $2.25 billion, reflecting a decrease compared to the same period in 2023[63] - Net income for the six months ended March 29, 2024, was reported at $183.3 million, a decrease from $231.3 million for the same period in the previous year, representing a decline of about 20.8%[19] Cash and Liquidity - Cash and cash equivalents increased to $1,205.4 million as of March 29, 2024, from $718.8 million at the end of September 2023[14] - The company reported a net cash provided by operating activities of $1,075.2 million for the six months ended March 29, 2024, compared to $1,185.1 million in the prior year[17] - Cash provided by operating activities was $1,075.2 million for the six months ended March 29, 2024, compared to $1,185.1 million in the prior year[81] - Cash, cash equivalents, and marketable securities totaled $1,221.3 million as of March 29, 2024, an increase of $482.8 million from September 29, 2023[85] - The company expects that its cash, cash equivalents, and marketable securities will be sufficient to fund both short-term and long-term liquidity requirements, including research and development and potential acquisitions[88] Equity and Assets - Total stockholders' equity increased to $6,359.2 million as of March 29, 2024, from $6,082.7 million at the end of September 2023[14] - As of March 29, 2024, the total stockholders' equity increased to $6,359.2 million from $6,227.2 million at December 29, 2023, reflecting a growth of approximately 2.1%[19] - Total assets decreased to $8,309.7 million as of March 29, 2024, down from $8,426.7 million as of September 29, 2023[14] - The balance of retained earnings as of March 29, 2024, was $6,072.6 million, compared to $5,998.4 million at December 29, 2023, indicating an increase of approximately 1.2%[19] Expenses - Research and development expenses for the three months ended March 29, 2024, were $154.4 million, slightly up from $148.2 million in the same period last year[9] - Selling, general, and administrative expenses decreased to $76.8 million for the three months ended March 29, 2024, down 2.8% from $79.0 million in the prior year[73] - Interest expense decreased to $7.1 million for the three months ended March 29, 2024, a decline of 62.4% compared to $18.9 million in the same period last year[78] - Provision for income taxes was $9.6 million for the three months ended March 29, 2024, down 64.4% from $27.0 million in the prior year[79] - The company reported share-based compensation expenses of $40.3 million for the six months ended March 29, 2024, compared to $52.6 million in the previous period, reflecting a reduction of about 23.8%[19] Dividends - The company paid dividends totaling $218.0 million during the six months ended March 29, 2024, compared to $198.0 million in the same period of 2023[17] - The company declared dividends totaling $109.1 million for the six months ended March 29, 2024, slightly up from $108.9 million in the previous period[19] - A cash dividend of $0.68 per share was declared on April 30, 2024, payable on June 11, 2024[55] Market and Strategic Focus - Skyworks Solutions, Inc. continues to focus on expanding its presence in various markets, including aerospace, automotive, and connected home applications, leveraging its analog and mixed-signal semiconductor technologies[22] - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements, which may affect future disclosures[29][30] Inventory and Impairment - Total inventory as of March 29, 2024, was $835.5 million, a decrease of 25.4% from $1,119.7 million as of September 29, 2023[38] - The company recorded an impairment charge of $16.1 million related to a previously capitalized in-process research and development project during the six months ended March 29, 2024[35] Stock Repurchase - The company has a stock repurchase program authorized for up to $2.0 billion, with $2.0 billion remaining available as of March 29, 2024[52][53] - During the three months ended March 29, 2024, the company repurchased 5,986 shares at an average price of $105.57 per share[105] Risk Management - The company does not believe that investment or interest rate risks currently pose material exposures to its business or results of operations[95] - Substantially all sales are conducted in U.S. dollars, which mitigates the impact of foreign exchange rate fluctuations on the company's results[96] - The company had no outstanding foreign currency forward or options contracts as of March 29, 2024[98] - The company's cash equivalent investments have short-term maturity periods, which help reduce market or interest rate risk[93] - There have been no changes to the company's internal control over financial reporting that materially affect its operations[100]

Financial Performance - Revenue for Q2 FY24 was $1.046 billion, a decrease from $1.153 billion in Q2 FY23, representing a decline of approximately 9.3% year-over-year[3]. - GAAP diluted earnings per share (EPS) for Q2 FY24 was $1.14, down from $1.46 in Q2 FY23, reflecting a decrease of about 21.9%[3][20]. - Non-GAAP diluted EPS for Q2 FY24 was $1.55, compared to $1.46 in Q2 FY23, indicating an increase of approximately 6.2%[3]. - Operating income for Q2 FY24 was $189.2 million, down from $273.3 million in Q2 FY23, a decline of about 30.8%[20]. - GAAP gross profit for Q2 2024 was $420.3 million, down 20.3% from $527.4 million in Q2 2023[21]. - Non-GAAP gross profit for Q2 2024 was $470.9 million, a decrease of 18.3% compared to $576.6 million in Q2 2023[21]. - GAAP net income for Q2 2024 was $183.3 million, a decrease of 21.3% compared to $232.8 million in Q2 2023[21]. - Non-GAAP net income for Q2 2024 was $250.7 million, down 22.5% from $323.1 million in Q2 2023[21]. - GAAP net cash provided by operating activities for Q2 2024 was $300.2 million, a decline of 27.0% from $411.7 million in Q2 2023[21]. - Non-GAAP free cash flow for Q2 2024 was $272.6 million, down 25.6% compared to $366.4 million in Q2 2023[21]. - GAAP gross margin for Q2 2024 was 40.2%, down from 45.7% in Q2 2023[21]. - Non-GAAP gross margin for Q2 2024 was 45.0%, a decrease from 50.0% in Q2 2023[21]. Future Projections - For Q3 FY24, the company expects revenue to be approximately $900 million, plus or minus 2%[8]. - Anticipated non-GAAP diluted EPS for Q3 FY24 is projected at $1.21 at the mid-point of the revenue range[8]. Cash Flow and Assets - The company generated quarterly operating cash flow of $300 million and free cash flow of $273 million[5]. - Total assets decreased from $8,426.7 million on September 29, 2023, to $8,309.7 million on March 29, 2024, a decline of approximately 1.39%[34]. - Cash, cash equivalents, and marketable securities increased significantly from $738.5 million to $1,221.3 million, representing a growth of about 65.5%[34]. - Net cash provided by operating activities for the six months ended March 29, 2024, was $1,075.2 million, compared to $1,185.1 million for the same period in 2023, a decrease of approximately 9.3%[36]. - Inventory levels decreased from $1,119.7 million to $835.5 million, a reduction of about 25.4%[34]. - Total debt decreased from $1,292.3 million to $993.6 million, a decline of approximately 23.2%[34]. - The company reported a net increase in cash and cash equivalents of $175.7 million for the three months ended March 29, 2024, compared to an increase of $12.7 million for the same period in 2023[36]. - Accounts receivable decreased from $864.3 million to $615.3 million, a decline of approximately 28.8%[34]. - Stockholders' equity increased from $6,082.7 million to $6,359.2 million, an increase of about 4.5%[34]. Dividends and Shareholder Returns - The board of directors declared a cash dividend of $0.68 per share, payable on June 11, 2024[9]. - Dividends paid increased from $98.7 million to $109.1 million for the three months ended March 29, 2024, reflecting a rise of about 12.9%[36]. Strategic Initiatives - The company plans to leverage connectivity technology across IoT devices, automotive electrification, and AI infrastructure for long-term growth[4]. - Skyworks has expanded its design win pipeline in automotive and secured several audio SoC design wins for wireless gaming and soundbars[10].

JHVEPhoto In our previous analysis of Skyworks Solutions, Inc. (NASDAQ:SWKS), we highlighted its Broad Markets segment's growth was propelled by fast-growing end markets and believed the company’s Broad Markets would predominantly drive its future growth due to the high-growth end markets like data centers, offsetting stagnant revenue growth in its Mobile segment due to flattish demand for Apple's (AAPL) next-gen iPhone, which constituted 59% of Skyworks' revenue. Nevertheless, Skyworks' revenue growth ...

Core Insights - Skyworks Solutions (SWKS) has a strong history of beating earnings estimates and is well-positioned for future earnings success [1][2] - The company has surpassed earnings estimates by an average of 2.89% over the last two quarters, with recent earnings of $1.97 per share against an expectation of $1.95, resulting in a surprise of 1.03% [1] - The positive Zacks Earnings ESP of +0.73% indicates bullish sentiment among analysts regarding the company's earnings prospects [3] Earnings Performance - In the most recent quarter, Skyworks reported earnings of $1.97 per share, exceeding the consensus estimate of $1.95 by 1.03% [1] - For the previous quarter, the company reported $2.20 per share against an estimate of $2.10, achieving a surprise of 4.76% [1] Analyst Sentiment - Estimates for Skyworks have been trending higher, supported by its history of earnings surprises [2] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with a historical success rate of nearly 70% for stocks with this profile [2] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [3] - A positive Earnings ESP indicates that analysts have recently become more optimistic about the company's earnings [3] Importance of Earnings ESP - Companies may beat consensus EPS estimates, but this alone may not drive stock prices higher [4] - Checking a company's Earnings ESP before quarterly releases is crucial for increasing the odds of successful investment decisions [4]

Company and Industry Overview * **Company**: Skyworks Solutions, Inc. (NASDAQ: SWKS) * **Industry**: Semiconductor, Mobile and Wireless Technologies, IoT, Automotive, Data Center * **Key Focus**: Curated solutions for customers, strong technical expertise, in-house manufacturing capabilities Market Trends and Priorities * **Mobile and Wireless Technologies**: * Majority of revenue comes from mobile and wireless technologies, but the company is diversifying into other areas like automotive, data center, and IoT. * Skyworks focuses on mid to high-tier smartphones and has a strong position with Google and Samsung. * The company is well-positioned to capture opportunities in the Android ecosystem, including Google and Samsung. * Skyworks has a strong track record of design wins in the mobile ecosystem and continues to drive share. * **5G and AI**: * Skyworks sees significant opportunities in 5G, particularly in the high-end market where performance continues to improve. * The company believes AI will drive a whole new set of technologies in handheld devices, creating a significant opportunity for companies like Skyworks. * Skyworks is uniquely positioned to address the technical challenges of AI in smartphones due to its strong technical expertise and in-house manufacturing capabilities. * **Broad Markets**: * Skyworks has a strong position in IoT, with a large set of meaningful opportunities and revenue streams. * The company has made significant progress in the automotive market, with design wins with customers like Tesla. * Skyworks has a strong position in data center timing applications, with a growing portfolio of products and solutions. Financials and Strategy * **Revenue Growth**: Skyworks expects to see revenue growth in the broad markets segment, particularly in automotive and IoT. * **Capital Allocation**: Skyworks has a strong balance sheet and expects to use its cash for dividends, buybacks, and acquisitions. * **Acquisitions**: Skyworks has a history of successful acquisitions and plans to continue to look for opportunities to expand its portfolio and capabilities. Key Takeaways * Skyworks is a diversified semiconductor company with a strong focus on curated solutions for customers. * The company has a strong technical expertise and in-house manufacturing capabilities, positioning it well for growth in key markets like 5G, AI, IoT, automotive, and data center. * Skyworks has a strong balance sheet and plans to use its cash for dividends, buybacks, and acquisitions.

SolStock/E+ via Getty Images Skyworks Solutions (NASDAQ:SWKS) reported in-line results with solid guidance. Management noted a change in Android business with growth returning. The price of the stock traded lower quite a bit in the few days following the report. Skyworks' model, with its reporting approaches, makes covering and projecting future performance extremely difficult. Unlike our previous articles, such as Skyworks Solutions Temporarily Suffers From Stacked Channels, which referenced financial ...

It has been about a month since the last earnings report for Skyworks Solutions (SWKS) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Skyworks due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Skyworks' Q1 Earnings Beat Estimates, Re ...

IRVINE, Calif.--(BUSINESS WIRE)--Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high-performance analog and mixed-signal semiconductors connecting people, places and things, today announced that executives will participate in a fireside chat at the Morgan Stanley Technology, Media & Telecom Conference on March 5, 2024, at 9:30 a.m. PST from the Palace Hotel in San Francisco. The event will be webcast live and archived for replay for one week following the conference in the “Investors” section of ...