Skyworks' (SWKS) Q1 Earnings Meet Estimates, Revenues Down Y/Y
Skyworks Solutions SWKS reported first-quarter fiscal 2023 non-GAAP earnings of $2.59 per share, in line with the Zacks Consensus Estimate but decreasing 17.5% year over year.
Revenues of $1.33 billion surpassed the Zacks Consensus Estimate by 0.94% but decreased 12% on a year-over-year basis.
Mobile revenues accounted for 65% of total revenues. Broad markets accounted for 35% 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.
Non-GAAP gross margin expanded 30 basis points (bps) on a year-over-year basis to 51.5% and 20 bps, sequentially.
Research & development expenses, as a percentage of revenues, increased 230 bps year over year to 10.6%.
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 90 bps to 6.4% in the reported quarter.
Non-GAAP operating margin contracted 180 bps on a year-over-year basis to 37% in the reported quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash & cash equivalents and marketable securities were $992.6 million compared with $586.8 million as of Sep 30, 2022.
Long-term debt was $2.19 billion as of Dec 31, 2022, flat with the prior quarter.
Cash generated by operating activities was $773.4 million in the quarter under discussion compared with $236.3 million in the previous quarter.
Skyworks repurchased 1.8 million shares for $166 million in the reported quarter. The company paid dividends worth $99 million.
It also announced a new $2 billion stock repurchase program.
For the second quarter of fiscal 2023, Skyworks expects revenues between $1.125 billion and $1.175 billion.
Gross margin is expected between 50% and 50.5%. Operating expenses are expected to be in the range of $189-$191 million.
Earnings are expected to be $2.02 per share at the mid-point of this revenue guidance.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #4 (Sell).
Skyworks shares have declined 19.7% in the past year, outperforming the Zacks Computer & Technology sector’s decline of 17.7%.
Cambium Networks CMBM, Bruker BRKR and RingCentral RNG are some better-ranked stocks that investors can consider in the broader sector. While Cambium sports a Zacks Rank #1 (Strong Buy), both Bruker and RingCentral carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium shares have declined 13.3% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.
Bruker shares have gained 6% in the past year. BRKR is set to report its fourth-quarter 2022 results on Feb 9.
RingCentral shares have declined 73.3% in the past year. RNG is set to report its fourth-quarter 2022 results on Feb 15.
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