Financial Data and Key Metrics - Revenue for Q3 2024 was $906 million, with earnings per share (EPS) of $1.21 and free cash flow of $249 million [6] - Year-to-date free cash flow reached $1.3 billion, representing a 40% free cash flow margin [6] - Gross margin was 46%, up 100 basis points sequentially, driven by cost-reduction actions and favorable mix shifts [13] - Operating income was $219 million, with an operating margin of 24% [14] - Cash and investments grew to nearly $1.3 billion, with $1 billion in debt [15] Business Line Performance - Mobile revenue accounted for 61% of total revenue, down 21% sequentially, while broad markets contributed 39%, up 1% sequentially [13] - The company secured 5G content for premium Android smartphones, including Google Pixel 8a, Samsung Galaxy M, and Oppo Reno12 [12] - In broad markets, the company delivered 2 consecutive quarters of sequential growth since the December bottom, with expectations for modest growth in 2024 [8] - Edge IoT demand is improving, with strong design wins for WiFi 7 systems, expected to drive a multiyear upgrade cycle [8] Market Performance - In mobile, inventory levels and order patterns are normalizing, with generative AI expected to drive a smartphone replacement cycle [7] - In automotive and industrial, excess inventory levels are being worked through, with signs of stabilization and bullishness on design wins for connected car and EV markets [8] - Traditional data center and wireless infrastructure inventory levels remain elevated, prolonging recovery, but end customers are expected to replenish inventory once conditions stabilize [8] Company Strategy and Industry Competition - The company is well-positioned for the migration of generative AI to the edge, with expectations of a smartphone replacement cycle driven by AI applications [9] - Skyworks is targeting high-performance timing solutions for next-generation data centers, including 800 gig and 1.6 terabit Ethernet switches in optical modules [10] - The company believes in a hybrid approach to AI computing, combining on-device and cloud-based solutions, which aligns with its strengths in RF technology and advanced packaging [11] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the long-term impact of AI on the smartphone market, expecting a multiyear upgrade cycle [7][9] - The company anticipates revenue of $1 billion to $1.04 billion for Q4 2024, with mobile business expected to grow 20% sequentially [16] - Gross margin is projected to be in the range of 46% to 47% for Q4, with further expansion expected due to cost-reduction actions and higher utilization rates [16] Other Important Information - The company paid $109 million in dividends and repurchased 764,000 shares for $77 million in Q3 [15] - A 3% increase in the quarterly dividend to $0.70 per share was announced, reflecting confidence in the company's long-term strategic outlook [15] Q&A Session Summary Question: Equilibrium sell-through revenue levels in broad markets [18] - The company is gaining share in auto and connected car markets, with strong design wins and growth opportunities in safety systems and driver assist [19] - WiFi 7 upgrade cycles are progressing well, with significant volume expected in home, enterprise, commercial, and industrial markets [20] Question: Shape of the wireless business cycle and Android opportunities [21] - Stronger demand signals are emerging, with opportunities in Android and AI-enabled smartphones [22][23] Question: Broad markets inventory correction and growth outlook [25] - Broad markets have seen 2 consecutive quarters of sequential growth, with further growth expected in Q4 [26] - Inventory correction is largely over in consumer enterprise, but ongoing in automotive and industrial markets [26] Question: Gross margin trajectory and cash return strategy [28][29][45] - Gross margins are expected to improve further, driven by cost reductions, higher utilization, and favorable product mix [30] - The company is committed to returning excess cash flow to shareholders through dividends and share buybacks, with optionality for strategic M&A [48][49] Question: AI impact on smartphone refresh cycle and content gains [37][42] - AI is expected to drive a long-term smartphone upgrade cycle, with significant content gain opportunities in future generations [38][43] Question: AI opportunities in IoT and robotics [51] - The company sees potential for AI technologies to expand into IoT and robotics, leveraging existing RF expertise [52][54] Question: Impact of internal modem adoption by largest customer [56] - The company maintains a strong relationship with its largest customer but cannot provide specific details on potential impacts [57] Question: Inventory levels in data center and wireless infrastructure [58] - Inventory levels remain elevated in traditional data center and wireless infrastructure, with recovery expected to be prolonged [59] Question: Integration trends in RF technology [61] - The company is well-positioned to compete in high-end markets with best-in-class RF technology and manufacturing scale [62] Question: AI content uplift in smartphones [63] - AI will drive higher demands on RF technology, including filtering, latency, and throughput, aligning with the company's strengths [65]

Group 1 - Skyworks Solutions reported quarterly earnings of $1.21 per share, matching the Zacks Consensus Estimate, but down from $1.73 per share a year ago [1] - The company posted revenues of $905.5 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 0.54%, compared to $1.07 billion in the same quarter last year [1] - Over the last four quarters, Skyworks has surpassed consensus EPS estimates three times and revenue estimates two times [1] Group 2 - Skyworks shares have increased approximately 4.4% since the beginning of the year, while the S&P 500 has gained 14.5% [2] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for stock performance [2] - The current consensus EPS estimate for the upcoming quarter is $1.48 on revenues of $1.02 billion, and for the current fiscal year, it is $6.21 on revenues of $4.18 billion [4] Group 3 - The Zacks Industry Rank for Semiconductors - Radio Frequency is in the top 8% of over 250 Zacks industries, indicating strong industry performance potential [4] - The estimate revisions trend for Skyworks is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [3]

Financial Performance - Net revenue for the three months ended June 28, 2024, was $905.5 million, a decrease of 15.5% compared to $1,071.2 million for the same period in 2023[8] - Gross profit for the nine months ended June 28, 2024, was $1,291.0 million, down 20.7% from $1,629.2 million in the prior year[8] - Operating income for the three months ended June 28, 2024, was $130.4 million, a decline of 43.4% from $230.7 million in the same quarter of 2023[8] - Net income for the nine months ended June 28, 2024, was $535.5 million, representing a decrease of 27.5% compared to $738.0 million for the same period in 2023[11] - Net income for the three months ended June 28, 2024, was reported at $120.9 million, compared to $195.8 million for the same period in the previous year, indicating a decrease of about 38.2%[26] - Gross profit for the three months ended June 28, 2024, was $364.1 million, representing a 21.5% decrease from $464.1 million in the prior year, with a gross profit margin of 40.2%[66] - Operating income for the three months ended June 28, 2024, was $130.5 million, a decline of 33.0% compared to $229.5 million in the same period of fiscal 2023[63] - Net income for the three months ended June 28, 2024, was 13.4% of net revenue, down from 18.3% in the same period of fiscal 2023[61] Cash and Assets - Cash and cash equivalents increased to $1,263.4 million as of June 28, 2024, from $718.8 million at the end of September 2023[14] - Total current assets rose to $3,239.1 million as of June 28, 2024, compared to $3,179.5 million at the end of September 2023[14] - Cash provided by operating activities decreased by $142.3 million during the nine months ended June 28, 2024, compared to the same period in fiscal 2023, primarily due to lower net income, partially offset by favorable changes in working capital of $109.3 million[80] - Cash used in investing activities decreased by $61.7 million during the nine months ended June 28, 2024, mainly due to a $256.4 million decrease in purchases of marketable securities and a $66.0 million decrease in cash used for capital expenditures[81] - Cash used in financing activities decreased by $469.6 million during the nine months ended June 28, 2024, primarily due to a $400.0 million decrease in debt repayment[82] - As of June 28, 2024, cash, cash equivalents, and marketable securities totaled $1,283.9 million, representing an increase of $545.4 million from September 29, 2023[84] Stock and Dividends - The company repurchased $77.3 million of common stock under its stock repurchase program during the nine months ended June 28, 2024[15] - The Company repurchased 0.8 million shares of its common stock for $77.4 million at an average price of $101.33 per share during the three months ended June 28, 2024, leaving $1.9 billion available under the stock repurchase program[51] - The company declared dividends totaling $109.1 million for both the three months ended March 29, 2024, and June 28, 2024, maintaining a consistent dividend payout[26] - Total dividends charged to retained earnings for the fiscal year ended September 29, 2023, amounted to $296.7 million, with a per share dividend of $1.86[54] Research and Development - Research and development expenses for the three months ended June 28, 2024, were $160.7 million, an increase of 8.9% from $148.0 million in the same period of 2023[8] - The company plans to increase its R&D budget by 15% to accelerate innovation and product development[110] Tax and Income - The provision for income taxes for the nine months ended June 28, 2024, was $42.5 million, down from $94.6 million in the same period of 2023[8] - The effective tax rate for the three months ended June 28, 2024, was 9.4%, compared to 11.8% for the same period in 2023[41] - Provision for income taxes decreased to $12.5 million for the three months ended June 28, 2024, down 52.5% from $26.3 million in the same period of fiscal 2023[77] Impairment and Expenses - The company recorded impairment charges of $0.7 million and $16.8 million for the three and nine months ended June 28, 2024, respectively, primarily related to an abandoned IPR&D project[33] - The company’s share-based compensation expense for the three months ended June 28, 2024, was $43.8 million, compared to $48.8 million for the same period in the previous year, showing a decrease of about 10.3%[26] Future Outlook and Strategy - The company anticipates continued decline in average selling prices for established products, while focusing on improving gross profit through increased unit volumes and new product introductions[66] - The company expects that its cash, cash equivalents, and marketable securities, along with cash generated from operations, will be sufficient to fund its short-term and long-term liquidity requirements[86] - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements, indicating a proactive approach to compliance and reporting[28] Market and Growth Initiatives - Skyworks Solutions, Inc. reported a significant increase in revenue, achieving $1.1 billion for the quarter, representing a 15% year-over-year growth[110] - The company highlighted a 20% increase in user data consumption, driven by the growing demand for 5G technology and IoT applications[110] - Skyworks Solutions, Inc. provided an optimistic outlook, projecting revenue growth of 10% for the next quarter, anticipating $1.2 billion in revenue[110] - The company is actively investing in new product development, with a focus on expanding its 5G portfolio, which is expected to contribute an additional $200 million in revenue over the next year[110] - Market expansion efforts include entering new geographic regions, with plans to increase market share in Asia by 25% over the next two years[110] - Skyworks Solutions, Inc. is exploring strategic acquisitions to enhance its technology capabilities, targeting companies with complementary technologies valued at approximately $500 million[110] - The company reported a gross margin of 45%, maintaining strong profitability despite increased operational costs[110] - Skyworks Solutions, Inc. announced a new partnership with a leading automotive manufacturer, expected to generate $150 million in revenue over the next three years[110] - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 30% by 2025[110]

Revenue and Earnings - Revenue for Q3 FY24 was $906 million, with GAAP diluted EPS of $0.75 and non-GAAP diluted EPS of $1.21[1][2] - Q3 FY24 GAAP operating income was $130 million, while non-GAAP operating income was $219 million[2] - Skyworks expects Q4 FY24 revenue to be between $1.00 billion and $1.04 billion, with non-GAAP diluted EPS of $1.52 at the midpoint[5] - Gross profit for Q3 FY24 was $364.1 million, compared to $464.1 million in the same period last year[12] - GAAP gross profit for Q3 2024 was $364.1 million, down from $464.1 million in Q3 2023, with a gross margin of 40.2% compared to 43.3% in the prior year[13] - Non-GAAP gross profit for Q3 2024 was $416.1 million, down from $509.0 million in Q3 2023, with a gross margin of 46.0% compared to 47.5% in the prior year[13] - GAAP operating income for Q3 2024 was $130.4 million, down from $230.7 million in Q3 2023, with an operating margin of 14.4% compared to 21.5% in the prior year[13] - Non-GAAP operating income for Q3 2024 was $219.0 million, down from $326.6 million in Q3 2023, with an operating margin of 24.2% compared to 30.5% in the prior year[13] - GAAP net income for Q3 2024 was $120.9 million, down from $195.8 million in Q3 2023, with diluted earnings per share of $0.75 compared to $1.22 in the prior year[13] - Non-GAAP net income for Q3 2024 was $195.1 million, down from $276.3 million in Q3 2023, with diluted earnings per share of $1.21 compared to $1.73 in the prior year[13] - Net income for the three months ended June 28, 2024, was $120.9 million, compared to $195.8 million for the same period in 2023[25] Cash Flow and Financial Position - Year-to-date operating cash flow reached $1.35 billion with a 43% margin, and free cash flow was $1.27 billion with a 40% margin[1] - GAAP net cash provided by operating activities for Q3 2024 was $273.5 million, down from $305.7 million in Q3 2023, with a margin of 30.2% compared to 28.5% in the prior year[13] - Non-GAAP free cash flow for Q3 2024 was $249.1 million, down from $274.4 million in Q3 2023, with a margin of 27.5% compared to 25.6% in the prior year[13] - Cash, cash equivalents, and marketable securities increased to $1,283.9 million as of June 28, 2024, from $738.5 million as of September 29, 2023[24] - Net cash provided by operating activities for the three months ended June 28, 2024, was $273.5 million, compared to $305.7 million for the same period in 2023[25] - Capital expenditures for the three months ended June 28, 2024, were $24.4 million, compared to $31.3 million for the same period in 2023[25] - Repurchase of common stock under the stock repurchase program for the three months ended June 28, 2024, was $77.3 million[25] - Dividends paid for the three months ended June 28, 2024, were $109.1 million, compared to $98.7 million for the same period in 2023[25] - Net increase in cash and cash equivalents for the three months ended June 28, 2024, was $58.0 million, compared to a decrease of $111.0 million for the same period in 2023[25] - Cash and cash equivalents at the end of the period on June 28, 2024, were $1,263.4 million, compared to $721.6 million for the same period in 2023[25] Dividend and Shareholder Returns - Skyworks increased its quarterly dividend by 3% to $0.70 per share[1][6] - Dividends paid for the three months ended June 28, 2024, were $109.1 million, compared to $98.7 million for the same period in 2023[25] Business Performance and Outlook - The company anticipates a 20% sequential increase in mobile business for Q4 FY24[5] - Skyworks secured 5G content for premium Android smartphones, including Google Pixel 8a and Samsung Galaxy M[3] - The company supported the launch of Wi-Fi 7 tri-band routers and access points with NETGEAR, TP-Link, and Cambium Networks[3] - Skyworks accelerated its design win pipeline in automotive, focusing on telematics, infotainment, and CV2X[3] Non-GAAP Financial Measures - The company uses non-GAAP financial measures to evaluate operating performance, make decisions, and compare against peers, excluding items like share-based compensation and acquisition-related expenses[14][15] - Non-GAAP financial measures are calculated by excluding specific items from GAAP measures, such as share-based compensation, acquisition-related expenses, and restructuring charges[16][17][18][19] - Forward-looking estimate of Q4 2024 non-GAAP diluted earnings per share includes estimated share-based compensation expense of $0.25 to $0.35 per diluted share, estimated amortization of intangibles of $0.20 to $0.30 per diluted share, and certain tax items of -$0.05 to $0.10 per diluted share[21] - Total share-based compensation for the three months ended June 28, 2024, was $42.7 million, compared to $44.8 million for the same period in 2023[23]

Loading...Loading...Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.Wolfe Research analyst Mike Polark upgraded the rating for iRhythm Technologies, Inc. IRTC from Peer Perform to Outperform and announced a price target of $115. iRhythm Technologies shares gained 2.5% to close at $98.16 on Wednesday. See how other analysts view this stock.Evercore ISI Grou ...

A month has gone by since the last earnings report for Skyworks Solutions (SWKS) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Skyworks due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Skyworks' Q2 Earnings Beat Estimates, Revenues ...

会议纪 要 证券研究报告 电子 2024年 05月09日 Skyworks（SWKS）FY2024Q2业绩点评及法说会纪要 会议时间：2024年5月1日 移动业务需求疲软二季度指引环比下滑，非移动业 会议地点：线上 务筑底回升  事项： 24年 5月 1日 Skyworks发布 FY2024Q2季度报告，并召开业绩说明会。公司 华创证券研究所 财务季度 FY2024Q2截至 2024年 3月 29日，即自然年度 CY2024Q1，以下表 述均为自然年度。2024Q1，公司实现营收 10.46 亿美元（YOY -9.3%，QoQ - 证券分析师：耿琛 13.0%）；Non-GAAP毛利率为45.0%（YOY -5.0pct，QoQ -1.4pct）；Non-GAAP 电话：0755-82755859 净利润 2.51 亿美元（YOY -22.4%）；Non-GAAP 摊薄 EPS 1.55 美元（YOY - 邮箱：gengchen@hcyjs.com 23.3%）。 执业编号：S0360517100004 证券分析师：岳阳  评论： 1. 业绩总览：Skyworks 一季度实现营收 10.46 亿美元（YO ...

Skyworks Solutions (SWKS) reported non-GAAP earnings of $1.55 per share in second-quarter fiscal 2024, beating the Zacks Consensus Estimate by 1.97% and declining 23.3% year over year.Revenues of $1.04 billion dropped 9.3% on a year-over-year basis and missed the consensus mark by 0.01%.Mobile revenues contributed nearly 66% to total revenues and declined 19% sequentially.In the second quarter of fiscal 2024, SWKS provided integrated platforms to the top 5G smartphone OEMs, including flagship and mid-tier r ...

Financial Data and Key Metrics Changes - Skyworks reported revenue of $1.046 billion for Q2 2024, with earnings per share of $1.55 and operating cash flow of $300 million, reflecting strong working capital management [7][14] - Gross profit was $471 million, resulting in a gross margin of 45%, which was down 140 basis points sequentially [13][14] - Operating income was $279 million, translating into an operating margin of 26.7% [14] Business Line Data and Key Metrics Changes - The mobile business accounted for approximately 66% of total revenue, down 19% sequentially, while broad markets represented about 34% of total revenue, up 1% sequentially [13] - The company reduced internal inventory by $91 million to $836 million, marking five consecutive quarters of reductions [14] Market Data and Key Metrics Changes - The mobile business experienced below-normal seasonal trends due to lower-than-expected end market demand, leading to excess inventory in the channel [9][19] - Broad markets showed modest sequential growth, indicating a potential recovery in certain segments [7][15] Company Strategy and Development Direction - The company aims to leverage connectivity technology across multiple growth segments, including edge IoT devices, automotive electrification, and AI infrastructure [10] - Skyworks is focusing on advanced RF solutions to address the increasing complexity of radio systems in vehicles, driven by the rise of software-defined vehicles and connected car technologies [10] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing weakness in certain end markets like infrastructure and automotive, but remains optimistic about long-term growth opportunities in automotive and AI workloads [9][11] - The outlook for Q3 2024 anticipates revenue of $900 million, with expectations of a sequential decline in the mobile business due to excess inventory clearance [15][16] Other Important Information - The company paid $109 million in dividends during Q2 2024, and cash balances grew to over $1.2 billion with $1 billion in debt, indicating a solid capital structure [14] - Management expects gross margin expansion in the remainder of 2024, driven by cost reduction actions and improved utilization rates [15][42] Q&A Session Summary Question: Excess inventory in mobile business - Management acknowledged that excess inventory has been a persistent issue, primarily affecting the mobile segment, and expects a sequential decline of 20% to 25% in Q3 due to inventory clearance [19][24] Question: Impact on second half of the year - Management indicated that they only guide one quarter at a time but expect most inventory clearance to occur in Q2, suggesting a return to normal revenue levels thereafter [23][24] Question: Content and program changes - Management noted a unique situation with their largest customer that affected expected content, leading to a projected decline in content by over 10% compared to the current phone model [26][27] Question: Recovery in broad markets - Management expressed optimism about growth in broad markets, particularly in automotive and industrial segments, despite some inventory challenges [52][55] Question: China mobile revenue - Management stated that China mobile revenue remains low but is improving, with expectations for meaningful growth in fiscal 2025 [58] Question: Android business outlook - Management indicated that the Android business is stabilizing and expects to see growth as end customer demand improves [49][61]

Skyworks Solutions (SWKS) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.97%. A quarter ago, it was expected that this chipmaker would post earnings of $1.95 per share when it actually produced earnings of $1.97, delivering a surprise of 1.03%.Over the last four quarters, the compa ...