Skyworks(US:SWKS) ZACKSยท2025-08-06 14:51Core Insights - Skyworks Solutions (SWKS) reported third-quarter fiscal 2025 non-GAAP earnings of $1.33 per share, exceeding the Zacks Consensus Estimate by 7.26% and reflecting a year-over-year increase of 9.9% [1][7] - Revenues reached $965 million, marking a 6.6% year-over-year growth and surpassing the consensus estimate by 2.66% [1][7] - Skyworks shares rose by 4.98% in pre-market trading, although they have declined 16.2% year to date, underperforming the broader Zacks Computer and Technology sector's return of 11.8% [1] Revenue Breakdown - Mobile revenues accounted for nearly 62% of total revenues, increasing by 1% sequentially and 8% year over year, driven by strong sell-through at the company's top customer and new Android product launches [2] - The largest customer contributed approximately 63% of revenues in the reported quarter [2] - Broad Markets, which includes edge IoT, automotive, industrial, infrastructure, and cloud, grew 2% sequentially and 5% year over year [2] Operating Performance - Non-GAAP gross margin expanded by 110 basis points year over year to 46.5%, benefiting from product mix and cost discipline [3] - Research & development expenses as a percentage of revenues increased by 290 basis points year over year to 20.7% [3] - Selling, general, and administrative expenses rose by 140 basis points to 9.3% in the reported quarter [3] - Non-GAAP operating margin contracted by 90 basis points year over year to 23.3% [4] Financial Position - As of June 27, 2025, cash & cash equivalents and marketable securities totaled $1.34 billion, down from $1.53 billion as of March 28 [5] - Long-term debt was $995.4 million, showing a slight sequential increase [5] - Cash generated by operating activities was $314.1 million, compared to $409 million in the prior quarter, with free cash flow at $252.7 million and a free cash flow margin of 26.2% [5] Shareholder Returns - Skyworks paid dividends totaling $104 million in the reported quarter and raised the dividend payout by 1% to 71 cents per share, payable on September 16 [6] - The company repurchased shares worth $330 million during the quarter [6] Future Guidance - For the fourth quarter of fiscal 2025, Skyworks expects revenues between $1 billion and $1.03 billion, with mid-single-digit sequential growth in Mobile [8] - Broad Markets is anticipated to grow again, with year-over-year trends accelerating and continued strength in bookings, backlog, and channel sell-through [8] - Gross margin is projected to be approximately 47%, with operating expenses expected between $235 million and $245 million [8] - Non-GAAP earnings per share are expected to be $1.40 at the midpoint of the revenue range [9]