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Skyworks (SWKS) Q3 Earnings Meet Estimates, Revenues Down Y/Y
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Skyworks Solutions (SWKS - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings of $1.21 per share, in line with the Zacks Consensus Estimate and declining 30.1% year over year.
Revenues of $905.5 million dropped 15.5% on a year-over-year basis and missed the consensus mark of $913 million.
Mobile revenues contributed nearly 61% to total revenues and declined 21% sequentially.
Broad markets contributed nearly 39% to total revenues and increased 1% sequentially.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Non-GAAP gross margin contracted 160 basis points (bps) on a year-over-year basis to 46%. Gross margin expanded 100 bps sequentially, reflecting SWKS’ ongoing cost-reduction actions and favorable mix shift.
Research & development expenses, as a percentage of revenues, increased 390 bps year over year to 17.7%.
Selling, general and administrative expenses increased 70 bps to 7.9% in the reported quarter.
Non-GAAP operating margin contracted 630 bps on a year-over-year basis to 24.2% in the reported quarter.
Balance Sheet & Cash Flow
As of Jun 28, 2024, cash & cash equivalents and marketable securities were $1.28 billion compared with $1.2 billion as of Mar 29, 2024.
Long-term debt remained steady at $994 million as of Jun 28, 2024, unchanged sequentially.
Cash generated by operating activities was $273.5 million in the quarter under discussion compared with $300 million in the previous quarter.
Free cash flow was $249.1 million, with a 27.5% free cash flow margin.
Skyworks paid dividends worth $109 million in the reported quarter and repurchased 764,000 shares for a total of $77 million.
Guidance
For the fourth quarter of fiscal 2024, the company currently expects revenues between $1 billion and $1.04 billion. Earnings are expected to be $1.52 per share at the mid-point of this revenue guidance.
The gross margin is expected to be between 46% and 47%. Operating expenses are expected to be in the range of $197-$203 million.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
SWKS’ shares have returned 4.6% compared with the Zacks Computer and Technology sector’s growth of 18.2% year to date.
Here are some better-ranked stocks worth considering in the broader sector.
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Skyworks (SWKS) Q3 Earnings Meet Estimates, Revenues Down Y/Y
Skyworks Solutions (SWKS - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings of $1.21 per share, in line with the Zacks Consensus Estimate and declining 30.1% year over year.
Revenues of $905.5 million dropped 15.5% on a year-over-year basis and missed the consensus mark of $913 million.
Mobile revenues contributed nearly 61% to total revenues and declined 21% sequentially.
Broad markets contributed nearly 39% to total revenues and increased 1% sequentially.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote
Operating Details
Non-GAAP gross margin contracted 160 basis points (bps) on a year-over-year basis to 46%. Gross margin expanded 100 bps sequentially, reflecting SWKS’ ongoing cost-reduction actions and favorable mix shift.
Research & development expenses, as a percentage of revenues, increased 390 bps year over year to 17.7%.
Selling, general and administrative expenses increased 70 bps to 7.9% in the reported quarter.
Non-GAAP operating margin contracted 630 bps on a year-over-year basis to 24.2% in the reported quarter.
Balance Sheet & Cash Flow
As of Jun 28, 2024, cash & cash equivalents and marketable securities were $1.28 billion compared with $1.2 billion as of Mar 29, 2024.
Long-term debt remained steady at $994 million as of Jun 28, 2024, unchanged sequentially.
Cash generated by operating activities was $273.5 million in the quarter under discussion compared with $300 million in the previous quarter.
Free cash flow was $249.1 million, with a 27.5% free cash flow margin.
Skyworks paid dividends worth $109 million in the reported quarter and repurchased 764,000 shares for a total of $77 million.
Guidance
For the fourth quarter of fiscal 2024, the company currently expects revenues between $1 billion and $1.04 billion. Earnings are expected to be $1.52 per share at the mid-point of this revenue guidance.
The gross margin is expected to be between 46% and 47%. Operating expenses are expected to be in the range of $197-$203 million.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
SWKS’ shares have returned 4.6% compared with the Zacks Computer and Technology sector’s growth of 18.2% year to date.
Here are some better-ranked stocks worth considering in the broader sector.
Shopify (SHOP - Free Report) , Apple (AAPL - Free Report) and Digital Ocean (DOCN - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Shopify and DigitalOcean sports a Zacks Rank #1 (Strong Buy) at present, while Apple carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify’s shares have declined 12.4% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
Apple’s shares have increased 10.7% year to date. AAPL is set to report third-quarter fiscal 2024 results on Aug 1.
DigitalOcean’s shares have moved down 35.8% year to date. DOCN is set to report second-quarter 2024 results on Aug 8.