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Skyworks' (SWKS) Q2 Earnings Beat Estimates, Revenues Down Y/Y
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Skyworks Solutions (SWKS - Free Report) reported second-quarter fiscal 2023 non-GAAP earnings of $2.02 per share, beating the Zacks Consensus Estimate by 0.5% but decreasing 23.2% year over year.
Revenues of $1.15 billion decreased 13.7% on a year-over-year basis.
Mobile revenues accounted for 60% of total revenues. Broad markets accounted for 40% of total revenues and benefited from strong automotive, infrastructure and industrial end-markets, as well as the continued global shift to WiFi 6E and 7.
Operating Details
Non-GAAP gross margin contracted 120 basis points (bps) on a year-over-year basis to 50% and 20 bps, sequentially.
Research & development expenses, as a percentage of revenues, increased 80 bps year over year to 12.9%.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
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Skyworks' (SWKS) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Skyworks Solutions (SWKS - Free Report) reported second-quarter fiscal 2023 non-GAAP earnings of $2.02 per share, beating the Zacks Consensus Estimate by 0.5% but decreasing 23.2% year over year.
Revenues of $1.15 billion decreased 13.7% on a year-over-year basis.
Mobile revenues accounted for 60% of total revenues. Broad markets accounted for 40% of total revenues and benefited from strong automotive, infrastructure and industrial end-markets, as well as the continued global shift to WiFi 6E and 7.
Operating Details
Non-GAAP gross margin contracted 120 basis points (bps) on a year-over-year basis to 50% and 20 bps, sequentially.
Research & development expenses, as a percentage of revenues, increased 80 bps year over year to 12.9%.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote
Selling, general and administrative expenses increased 60 bps to 6.9% in the reported quarter.
Non-GAAP operating margin contracted 330 bps on a year-over-year basis to 33.5% in the reported quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash & cash equivalents and marketable securities were $1.06 billion compared with $992.6 million as of Dec 31, 2022.
Long-term debt was $1.99 billion as of Mar 31, 2023, down from $2.19 billion as of Dec 31, 2022.
Cash generated by operating activities was $411.7 million in the quarter under discussion compared with $773.4 million in the previous quarter.
Skyworks repurchased shares worth $9 million in the reported quarter. It also paid dividends worth $99 million.
Guidance
For the third quarter of fiscal 2023, the company expects revenues between $1.050 billion and $1.090 billion.
Gross margin is expected between 47% and 48%. Operating expenses are expected to be in the range of $183-$187 million.
Earnings are expected to be $1.67 per share at the mid-point of this revenue guidance.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
The company’s shares have gained 3.1% year to date, underperforming the Zacks Computer & Technology sector’s gain of 20.7%.
Blink Charging (BLNK - Free Report) , Agilent Technologies (A - Free Report) and DigitalOcean (DOCN - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer & Technology sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Blink Charging shares have declined 36% year to date. BLNK is set to report its first-quarter 2023 results on May 9.
Agilent shares have declined 15.4% year to date. A is set to report its second-quarter fiscal 2023 results on May 23.
DigitalOcean shares have gained 24.7% year to date. DOCN is set to report its first-quarter 2023 results on May 9.