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• Revenue: $953 million, above the midpoint of guidance.

• Earnings Per Share (EPS): $1.24, $0.04 above guidance.

• Free Cash Flow: $371 million.

• Gross Margin: 46.7%, exceeding expectations.

• Operating Income: $222 million, with an operating margin of 23.3%.

• Net Income: $197 million.

• Operating Cash Flow: $410 million.

• Capital Expenditures: $39 million.

• Shareholder Returns: $600 million returned through dividends and share repurchases.

• Mobile Revenue: 62% of total revenue, down 17% sequentially.

• Broad Market Portfolio Revenue: Increased 2% sequentially and 3% year-over-year.

• Operating Expenses: $223 million.

• Cash and Investments: Over $1.5 billion.

• Debt: $1 billion.

• Warning! GuruFocus has detected 5 Warning Signs with SWKS.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Skyworks Solutions Inc (NASDAQ:SWKS) delivered solid financial performance with revenue of $953 million, exceeding the midpoint of their guidance.

• The company generated a free cash flow of $371 million, demonstrating strong cash generation capabilities.

• Skyworks Solutions Inc (NASDAQ:SWKS) returned a record $600 million to shareholders through share repurchases and dividend payments, highlighting their commitment to shareholder value.

• The diversified business segments, including automotive and edge IoT, showed steady recovery with five consecutive quarters of sequential revenue growth.

• The company secured design wins across 5G premium Android smartphones and expanded WiFi 7 across enterprise access points, routers, and home mesh networks.

Negative Points

• Mobile revenue, which constitutes 62% of total revenue, was down 17% sequentially, reflecting typical seasonal patterns.

• The macroeconomic and tariff developments present complexities, although the company believes its diversified global supply chain can navigate potential disruptions.

• The infrastructure networking and cloud segment remains choppy, indicating areas that need further growth.

• The company faces a highly competitive market, requiring continuous innovation and cost management to maintain its position.

• There is ongoing inventory digestion in certain end markets, which could impact future growth trajectories.

Q & A Highlights

Q: Phil, what are your initial thoughts about strategy and any strategic changes you might be contemplating at Skyworks? A: Philip Brace, CEO, emphasized the core technology and engineering talent at Skyworks, highlighting the company's position in wireless connectivity. He plans to focus on building upon this core capability and exploring adjacencies to fuel growth.