•
Mar 29, 2024

Skyworks Q2 2024 Earnings Report

Skyworks reported solid results and strong cash generation amidst a challenging macroeconomic environment.

Key Takeaways

Skyworks delivered revenue of $1.046 billion, GAAP diluted EPS of $1.14, and non-GAAP diluted EPS of $1.55. The company generated quarterly operating cash flow of $300 million and quarterly free cash flow of $273 million.

Delivered integrated platforms to leading 5G smartphone OEMs, including flagship and mid-tier launches at Samsung, Google, and Oppo.

Expanded design win pipeline and initiated new programs in automotive, including infotainment systems, traction inverters, cloud-enhanced driver-assist and CV2X on-board units.

Secured several audio SoC design wins for wireless gaming and soundbars with PlayStation® and Samsung

Mobile business saw below normal seasonal trends, with lower-than-expected end market demand.

Total Revenue
$1.05B
Previous year: $1.15B
-9.3%
EPS
$1.55
Previous year: $2.02
-23.3%
Gross Profit
$420M
Previous year: $527M
-20.3%
Cash and Equivalents
$1.22B
Previous year: $833M
+46.7%
Free Cash Flow
$273M
Previous year: $366M
-25.6%
Total Assets
$8.31B
Previous year: $8.84B
-6.0%

Skyworks

Skyworks

Forward Guidance

For the June quarter, Skyworks expects revenue to be $900 million, plus or minus 2%, and anticipates non-GAAP diluted earnings per share of $1.21 at the mid-point of the revenue range.

Positive Outlook

  • Revenue expected to be $900 million, plus or minus 2%.
  • Non-GAAP diluted earnings per share of $1.21 expected at the mid-point of the revenue range.
  • Anticipate further modest growth as inventory levels appear to be normalizing in certain end markets.
  • Board of directors has declared a cash dividend of $0.68 per share of the Company’s common stock, payable on June 11, 2024.
  • Leverage connectivity technology across edge-connected IoT devices, automotive electrification and advanced safety systems, and AI infrastructure.

Challenges Ahead

  • Mobile business expected to be down sequentially, below normal seasonal patterns.
  • Excess inventory clears.
  • Challenging macroeconomic environment.
  • Below normal seasonal trends in mobile business.
  • Lower-than-expected end market demand in mobile business.