Skyworks(US:SWKS) Huachuang Securities·2024-05-09 08:02Investment Rating - The report indicates a revenue target of $900 million for Q2 2024, which is lower than market expectations of $1.022 billion, with a projected decline in mobile business by 20% to 25% and a modest growth in non-mobile business by 2% to 3% [18] Core Insights - Skyworks reported Q1 2024 revenue of $1.046 billion, reflecting a year-over-year decline of 9.3% and a quarter-over-quarter decline of 13.0%, attributed to seasonal weakness [3][7] - Non-GAAP net profit for Q1 2024 was $251 million, down 22.4% year-over-year, with a diluted EPS of $1.55, which was slightly above analyst expectations [3][7] - The company has reduced inventory by $91 million to $836 million over five consecutive quarters, maintaining strong cash flow with $300 million in operating cash flow and $273 million in free cash flow [3][7][22] Summary by Sections 1. Q1 2024 Operational Overview - Skyworks achieved Q1 revenue of $1.046 billion, with a Non-GAAP gross margin of 45.0%, a decrease of 5.0 percentage points year-over-year [7][8] - Mobile business revenue was $690 million, accounting for approximately 66% of total revenue, while non-mobile business revenue was $356 million, accounting for about 34% [8] 2. Business Highlights - The company supplied integrated platforms to leading 5G smartphone manufacturers, including Samsung, Google, and Oppo, and initiated new projects in the automotive sector [9][21] - The Android business remains stable, generating nearly $100 million in revenue each quarter, with expectations for growth in the next 4-8 quarters due to improved end-user demand [10][28] 3. Non-Mobile Business - Non-mobile business showed seasonal growth in Q1 2024 after reaching a bottom in Q4 2023, with expectations for further growth in the upcoming quarters [10][12] - The automotive sector is expected to benefit from increased connectivity and regulatory changes, despite current market weaknesses [13][14] 4. Q2 2024 Performance Guidance - The company anticipates Q2 2024 revenue of $900 million, with a gross margin forecast of 45%-47% and a diluted EPS of $1.21 [18][22] - Mobile business is expected to decline significantly, while non-mobile business is projected to see modest growth [18][22]