Skyworks(SWKS) ZACKS·2025-05-08 15:20Core Viewpoint - Skyworks Solutions (SWKS) reported a decline in earnings and revenues for Q2 fiscal 2025, with non-GAAP earnings of $1.24 per share, beating estimates but down 20% year-over-year, and revenues of $953.3 million, down 8.9% year-over-year but slightly above consensus [1][2]. Financial Performance - Non-GAAP gross margin increased by 160 basis points year-over-year to 46.7% [3] - Research & development expenses rose by 480 basis points year-over-year to 19.6% of revenues [3] - Selling, general and administrative expenses increased by 190 basis points to 9.2% [3] - Non-GAAP operating margin contracted by 340 basis points year-over-year to 23.3% [3] Balance Sheet & Cash Flow - As of March 28, 2025, cash and cash equivalents were $1.53 billion, down from $1.75 billion as of December 27, 2024 [4] - Long-term debt was $995.1 million, slightly up from $994 million as of December 27, 2024 [4] - Cash generated by operating activities was $409.5 million, compared to $377.2 million in the prior quarter [4] - Free cash flow was $371 million, with a free cash flow margin of 38.9% [4] Dividend Information - Skyworks paid dividends totaling $110.6 million in the reported quarter [5] Q3 FY25 Guidance - For Q3 fiscal 2025, Skyworks expects revenues between $920 million and $960 million, with non-GAAP earnings projected at $1.24 per share at the midpoint [6] - The Zacks Consensus Estimate for Q3 revenues is $951.26 million, indicating a year-over-year decline of 9.06% [6] Market Performance - Following the results, SWKS shares fell by 2.06% in pre-market trading and have underperformed the Zacks Computer & Technology sector year-to-date, with a decline of 25% compared to the sector's decline of 8.7% [2]