Skyworks Solutions (SWKS) Q3 2024 earnings summary

Executive summary

• Q3 FY24 revenue was $906 million, with non-GAAP EPS of $1.21 and GAAP EPS of $0.75, meeting or slightly exceeding guidance.

• Net income for Q3 FY24 was $120.9 million GAAP and $195.1 million non-GAAP, both down year-over-year.

• Year-to-date free cash flow reached $1.3 billion, with a margin of 40%, and operating cash flow was $1.35 billion.

• Mobile business is normalizing, with optimism for an AI-driven smartphone replacement cycle; broad markets are recovering.

• Quarterly dividend increased by 3% to $0.70 per share, reflecting confidence in cash flow and capital structure.

Financial highlights

• Q3 FY24 revenue was $906 million, down from $1.07 billion year-over-year.

• Gross profit was $416 million (non-GAAP), with a non-GAAP gross margin of 46% and GAAP gross margin of 40.2%.

• Operating income was $219 million (non-GAAP, 24% margin); GAAP operating income was $130.4 million (14.4% margin).

• Free cash flow for Q3 was $249 million; year-to-date free cash flow margin at 40%.

• Diluted EPS for Q3 FY24 was $1.21 non-GAAP and $0.75 GAAP.

Outlook and guidance

• Q4 FY24 revenue expected between $1.0 billion and $1.04 billion.

• Non-GAAP diluted EPS for Q4 FY24 projected at $1.52 at the midpoint.

• Mobile business projected to rise ~20% sequentially; broad markets to see modest improvements.

• Gross margin guidance of 46%-47%, up 50 basis points at midpoint.

• Management expects strong liquidity with cash, cash equivalents, and marketable securities sufficient for needs.