Skyworks Solutions (SWKS) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue was $1.025 billion, up 13% sequentially, with non-GAAP EPS of $1.55, meeting or exceeding guidance midpoints.

• Mobile revenue grew 21% sequentially, driven by normalized customer orders and seasonal ramps.

• Broad markets showed modest sequential growth since December 2023, despite uneven demand and high inventory in some segments.

• Strong design win momentum in 5G, Wi-Fi 7, automotive, and IoT applications, including premium Android smartphones and major Wi-Fi brands.

• Management highlights strong free cash flow and positions the company to benefit from AI-driven smartphone upgrades.

Financial highlights

• Q4 non-GAAP gross margin was 46.5%, up 50 bps sequentially; GAAP gross margin was 41.9%.

• Q4 non-GAAP operating margin was 26.7%; Q4 operating income was $273 million.

• Q4 non-GAAP net income was $249.9 million; diluted EPS was $1.55, three cents above guidance.

• Q4 free cash flow was $393 million (38% margin); FY24 free cash flow was $1.668 billion at a 40% margin.

• Cash and investments totaled $1.6 billion at year-end, with $1 billion in debt.

Outlook and guidance

• Q1 FY25 revenue expected at $1.05–$1.08 billion, up 4% sequentially at midpoint.

• Mobile business projected to grow mid-single digits sequentially; broad markets to see further modest growth and return to year-over-year growth.

• Gross margin guided at 46–47%; operating expenses expected at $209–$215 million.

• Diluted EPS for Q1 FY25 expected at $1.57 at the midpoint.