Skyworks Surpasses EPS Estimates, Faces Revenue Dip in Q1 FY24

Skyworks Solutions, a wireless chip leader, reported its Q1 FY24 earnings, slightly exceeding analyst projections. The company posted $1.97 EPS, surpassing the estimated $1.95 by $0.02. Despite this win, it faced a 9.6% YoY revenue decline at $1.2 billion, aligning with expectations.

In Q2 guidance, Skyworks projected an in-line $1.52 EPS and revenue of $1.02-$1.07 billion, consistent with the estimated $1.04 billion. Liam K. Griffin, Chairman and CEO, highlighted the company's resilience in executing well and ensuring robust profitability amid macroeconomic volatility.

The quarter showcased a record free cash flow of $753 million, emphasizing effective working capital management. Griffin noted recovery signs in the Android smartphone market, positioning Skyworks for growth in edge-connected IoT, automotive electrification, safety systems, and AI-driven cloud upgrades.

Despite a mixed report, Skyworks' stock rose by 5.5% to $110 per share, attributed to tempered expectations amid semiconductor fluctuations. With a market cap of $16.98 billion, Skyworks had a slight revenue miss and beat in EPS. The gross margin dipped from 48% to 42.2%, reflecting market dynamics. The DIO at 121 suggests no excessive inventory buildup currently.