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Skyworks' (SWKS) Q4 Earnings Top Estimates, Revenues Rise Y/Y
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Skyworks Solutions (SWKS - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of $3.02 per share, beating the Zacks Consensus Estimate by 3.78% and increasing 15.3% year over year.
Revenues of $1.41 billion surpassed the Zacks Consensus Estimate by 0.25% and increased 7.3% on a year-over-year basis.
The company’s quarterly results benefited from an increased rate of premium 5G deployment along with growth in automotive, industrial and infrastructure end markets.
Mobile revenues accounted for 64% of total revenues. Skyworks delivered integrated platforms to the leading 5G smartphone OEMs, including flagship and mid-tier launches at Google, Samsung and others.
Broad markets revenues increased 30% year over year and accounted for 36% of total revenues.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Skyworks partnered with Vodafone to launch the UK's first Wi-Fi 6E platform in the reported quarter. It shipped tri-band platforms for Frontier Communications and launched connectivity solutions with Amazon, supporting their Wi-Fi 6 Power over Ethernet access points.
Skyworks won a new infrastructure contract at Samsung, enabling service providers to expand mid-band capacity and coverage.
Operating Details
Non-GAAP gross margin expanded 30 basis points (bps) on a year-over-year basis to 51.3%.
Research & development expenses, as a percentage of revenues, decreased 80 bps year over year to 10.6%.
Selling, general and administrative expenses decreased 140 bps to 6.2% in the reported quarter.
Non-GAAP operating margin expanded 40 bps on a year-over-year basis to 37.6% in the reported quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2022, cash & cash equivalents and marketable securities were $586.8 million compared with $662.2 million as of Jul 1, 2022.
Long-term debt was $2.19 billion as of Sep 30, 2022, flat with the prior quarter.
Cash generated by operating activities was $236.3 million in the quarter under discussion compared with $213.9 million in the previous quarter.
Skyworks repurchased 0.8 million shares for $80 million in the reported quarter.
Skyworks announced a quarterly dividend of 62 cents per share, payable on Dec 13, 2022, to shareholders of record as of Nov 22.
Guidance
For the first quarter of fiscal 2023, Skyworks expects revenues between $1.300 billion and $1.350 billion. Revenues are expected to decline sequentially.
Gross margin is expected between 51.25% and 51.75%. Operating expenses are expected to be in the range of $190-$193 million.
Earnings are expected to be $2.59 per share at the mid-point of this revenue guidance.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
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Skyworks' (SWKS) Q4 Earnings Top Estimates, Revenues Rise Y/Y
Skyworks Solutions (SWKS - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of $3.02 per share, beating the Zacks Consensus Estimate by 3.78% and increasing 15.3% year over year.
Revenues of $1.41 billion surpassed the Zacks Consensus Estimate by 0.25% and increased 7.3% on a year-over-year basis.
The company’s quarterly results benefited from an increased rate of premium 5G deployment along with growth in automotive, industrial and infrastructure end markets.
Mobile revenues accounted for 64% of total revenues. Skyworks delivered integrated platforms to the leading 5G smartphone OEMs, including flagship and mid-tier launches at Google, Samsung and others.
Broad markets revenues increased 30% year over year and accounted for 36% of total revenues.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote
Skyworks partnered with Vodafone to launch the UK's first Wi-Fi 6E platform in the reported quarter. It shipped tri-band platforms for Frontier Communications and launched connectivity solutions with Amazon, supporting their Wi-Fi 6 Power over Ethernet access points.
Skyworks won a new infrastructure contract at Samsung, enabling service providers to expand mid-band capacity and coverage.
Operating Details
Non-GAAP gross margin expanded 30 basis points (bps) on a year-over-year basis to 51.3%.
Research & development expenses, as a percentage of revenues, decreased 80 bps year over year to 10.6%.
Selling, general and administrative expenses decreased 140 bps to 6.2% in the reported quarter.
Non-GAAP operating margin expanded 40 bps on a year-over-year basis to 37.6% in the reported quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2022, cash & cash equivalents and marketable securities were $586.8 million compared with $662.2 million as of Jul 1, 2022.
Long-term debt was $2.19 billion as of Sep 30, 2022, flat with the prior quarter.
Cash generated by operating activities was $236.3 million in the quarter under discussion compared with $213.9 million in the previous quarter.
Skyworks repurchased 0.8 million shares for $80 million in the reported quarter.
Skyworks announced a quarterly dividend of 62 cents per share, payable on Dec 13, 2022, to shareholders of record as of Nov 22.
Guidance
For the first quarter of fiscal 2023, Skyworks expects revenues between $1.300 billion and $1.350 billion. Revenues are expected to decline sequentially.
Gross margin is expected between 51.25% and 51.75%. Operating expenses are expected to be in the range of $190-$193 million.
Earnings are expected to be $2.59 per share at the mid-point of this revenue guidance.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
Asure Software (ASUR - Free Report) , Absolute Software , and Agilent Technologies (A - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. All three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Asure shares are down 15% year to date. ASUR is set to report third-quarter 2022 results on Nov 7.
Absolute shares are up 19.9% year to date. ABST is set to report first-quarter fiscal 2023 results on Nov 8.
Agilent shares are down 15.7% year to date. A is set to report fourth-quarter fiscal 2022 results on Nov 21.