IRVINE, Calif. - Skyworks Solutions, Inc. (NASDAQ:SWKS), a leading innovator in high-performance analog semiconductors, reported its third fiscal quarter earnings, matching analyst expectations for adjusted EPS but witnessing a stock decline of 4%.
The company posted an adjusted EPS of $1.21, aligning with the consensus estimate. Revenue for the quarter was $905.5 million, slightly above the analyst projection of $900.41 million.
Despite meeting adjusted EPS estimates, the company's revenue represented a decline compared to the same quarter last year, which may have contributed to the negative investor sentiment. Skyworks' management highlighted the strength in the mobile business and recovery in broad markets, with expectations for AI applications to drive future growth.
For the fourth fiscal quarter of 2024, Skyworks anticipates revenue between $1.00 billion and $1.04 billion, with a midpoint slightly below the consensus estimate of $1.01 billion. The company also expects an adjusted EPS of $1.52 at the midpoint of the revenue range, which is just above the analyst consensus of $1.51.
Liam K. Griffin, Chairman, CEO, and President of Skyworks, stated, "Exiting the June quarter, our mobile business is ramping up while our broad markets business continues to recover." He also noted the potential impact of generative AI applications on the industry.
The company's board declared a cash dividend of $0.70 per share, a 3% increase from the prior quarter. This dividend is payable on September 10, 2024, to stockholders of record as of August 20, 2024.
Skyworks' solid financial position is underscored by its year-to-date operating cash flow of $1.35 billion and free cash flow of $1.27 billion, boasting impressive margins of 43% and 40%, respectively. The company's commitment to returning value to shareholders is evident through the dividend increase and its strong cash flow generation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.