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Jun 26, 2020

Skyworks Q3 2020 Earnings Report

Skyworks delivered revenue above expectations, driven by Sky5® platform gains and 5G adoption.

Key Takeaways

Skyworks reported Q3 FY20 results with revenue of $736.8 million, exceeding consensus estimates. GAAP diluted EPS was $0.77, and non-GAAP diluted EPS was $1.25. The company guides to double-digit sequential revenue and earnings growth in Q4 FY20 and increased the quarterly dividend by 14 percent to $0.50 per share.

Revenue for the third fiscal quarter was $736.8 million, exceeding consensus estimates.

On a GAAP basis, operating income for the third fiscal quarter of 2020 was $147.5 million with diluted earnings per share of $0.77.

On a non-GAAP basis, operating income was $230.3 million with non-GAAP diluted earnings per share of $1.25.

The company anticipates revenue to be between $830 million and $850 million with non-GAAP diluted earnings per share of $1.51 at the midpoint of our revenue range for Q4 2020.

Total Revenue
$737M
Previous year: $767M
-3.9%
EPS
$1.25
Previous year: $1.35
-7.4%
Gross Profit
$334M
Previous year: $313M
+6.9%
Cash and Equivalents
$791M
Previous year: $743M
+6.5%
Free Cash Flow
$187M
Previous year: $122M
+54.0%
Total Assets
$5.07B
Previous year: $4.84B
+4.8%

Skyworks

Skyworks

Forward Guidance

For the fourth fiscal quarter of 2020, Skyworks anticipates revenue to be between $830 million and $850 million with non-GAAP diluted earnings per share of $1.51 at the midpoint of the revenue range.

Positive Outlook

  • Strong demand for market-leading solutions
  • Double-digit sequential revenue growth expected
  • Double-digit sequential earnings per share growth expected
  • Confidence in Skyworks’ strategic outlook
  • Strong cash flow generation

Challenges Ahead

  • Guidance is based on current expectations of customer demand
  • Guidance is based on continued ability to manufacture and ship products
  • Customer demand could be impacted by the COVID-19 pandemic
  • Ability to manufacture and ship products could be impacted by the COVID-19 pandemic
  • Other factors could impact the guidance