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Skyworks' (SWKS) Q3 Earnings Top Estimates, Revenues Rise Y/Y

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Skyworks Solutions SWKS reported third-quarter fiscal 2022 non-GAAP earnings of $2.44 per share, which beat the Zacks Consensus Estimate by 3.39% and increased 13.5% year over year.

Revenues of $1.23 billion surpassed the Zacks Consensus Estimate by 0.13% and increased 10.4% on a year-over-year basis.

The company’s quarterly results benefited from an increased rate of premium 5G deployment along with growth in automotive, data center and network infrastructure.

Mobile revenues (62% of total revenues) declined slightly year over year.

Broad markets (38% of total revenues) revenues surged 38% year over year, driven by strong demand for automotive, industrial, data center and network infrastructure end-markets.

Skyworks Solutions, Inc. Price, Consensus and EPS Surprise

Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise

Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote

 

The adoption of Skyworks’ Sky5 yields strong results as the platform powers 5G smartphone makers, including Samsung and Google.

Operating Details

Non-GAAP gross margin expanded 60 basis points (bps) on a year-over-year basis and 20 bps sequentially, to 51.2%.

Research & development expenses, as a percentage of revenues, increased 100 bps year over year to 12.7%.

Selling, general and administrative expenses decreased 140 bps to 6.2% in the reported quarter.

Non-GAAP operating margin contracted 50 bps on a year-over-year basis to 35.7% in the reported quarter. On a sequential basis, the operating margin expanded 160 bps.

Balance Sheet & Cash Flow

As of Jul 1, 2022, cash & cash equivalents and marketable securities were $662.2 million compared with $778 million as of Apr 1, 2022.

Long-term debt was $2.19 billion as of Jul 1, 2022, flat with the prior quarter.

Cash generated by operating activities was $213.9 million in the quarter under discussion compared with $393 million in the previous quarter.

Skyworks repurchased 3 million shares for $418 million in the reported quarter.

Skyworks’ announced a quarterly dividend of 62 cents per share, up 11%, payable on Sep 15, 2022, to shareholders as of Aug 25.

Guidance

For the fourth quarter of fiscal 2022, Skyworks expects revenues between $1.375 billion and $1.360 billion. Earnings are expected to be $2.90 per share at the mid-point of this revenue guidance.

Zacks Rank & Stocks to Consider

Skyworks currently carries a Zacks Rank #3 (Hold).

Asure Software ASUR, Blink Charging BLNK, and Everbridge EVBG are some better-ranked stocks that investors can consider in the broader sector. All three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Asure shares are down 32.6% year to date. ASUR is set to report second-quarter 2022 results on Aug 8.

Blink shares are up 16.8% year to date. BLNK is set to report second-quarter 2022 results on Aug 8.

Everbridge shares are down 51.5% year to date. EVBG is set to report second-quarter 2022 results on Aug 9.


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