Skyworks Shares Fall 4% Following In-Line Earnings and Revenue Beat in Q3

Skyworks Solutions Reports Third Quarter Earnings Amid Stock Decline

IRVINE, Calif. – Skyworks Solutions, Inc., a prominent player in high-performance analog semiconductors, announced its earnings for the third fiscal quarter, meeting analyst expectations for adjusted earnings per share (EPS) but experiencing a 4% drop in stock value.

The company reported an adjusted EPS of $1.21, which aligns with the consensus forecast. Additionally, its revenue for the quarter reached $905.5 million, slightly exceeding the analyst prediction of $900.41 million. However, the revenue figure reflects a decline compared to the same quarter from the previous year, which may have negatively impacted investor sentiment.

Skyworks’ management pointed to strengths in its mobile sector and signs of recovery in broader markets, expressing optimism that advances in artificial intelligence (AI) will spur future growth.

Looking ahead to the fourth fiscal quarter of 2024, Skyworks projects revenue between $1.00 billion and $1.04 billion, with the midpoint falling slightly below the consensus estimate of $1.01 billion. They expect adjusted EPS of $1.52 at the midpoint, marginally above the analyst consensus of $1.51.

Liam K. Griffin, Chairman, CEO, and President of Skyworks, commented, "As we move past the June quarter, our mobile business is gaining momentum, while our broad markets sector is on the path to recovery." He also mentioned the potential influence of generative AI applications on the industry landscape.

In addition, the company’s board approved a cash dividend of $0.70 per share, marking a 3% increase from the previous quarter. This dividend will be payable on September 10, 2024, to stockholders registered as of August 20, 2024.

Skyworks demonstrates a robust financial position with year-to-date operating cash flow of $1.35 billion and free cash flow amounting to $1.27 billion, reflecting impressive margins of 43% and 40%, respectively. The company’s dedication to delivering shareholder value is evident through the increased dividend and strong cash flow performance.