Skyworks Beats Q4 EPS Estimates, Projects AI-Driven Smartphone Surge Despite Modest Q1 Outlook

Benzinga11-13

Skyworks Solutions Inc (NASDAQ:SWKS) shares are trading lower premarket on Wednesday after it reported fourth-quarter results on Tuesday.

The company reported adjusted EPS of $1.55, which beat the analyst consensus estimate of $1.52. Quarterly sales of $1.025 million were in line with the analyst consensus estimate. 

The company declared its quarterly dividend of 70 cents per share, payable on December 24, to stockholders of record at the close of business on December 3.

The company generated an annual operating cash flow of $1.825 billion and free cash flow of $1.668 billion.

Liam K. Griffin, chairman, chief executive officer and president of Skyworks, said, “For the second year in a row, we generated over $1.6 billion of free cash flow and ended fiscal 2024 with a record 40% free cash flow margin. Looking ahead, we believe AI is poised to ignite a transformative smartphone upgrade cycle, propelling the demand for higher levels of RF complexity.”

Outlook: Skyworks Solutions projects first-quarter of 2025 revenue to be $1.05 billion – $1.08 billion ($1.096 billion estimate) with adjusted earnings per share of $1.57 at the mid-point of the revenue range, vs. the estimate of $1.72.

Kris Sennesael, senior vice president and chief financial officer of Skyworks, stated, “We expect our mobile business to be up mid-single digits sequentially, driven by seasonal product ramps. In broad markets, despite excess inventory in select segments, we anticipate further modest sequential growth, and a return to year-over-year growth.”

Investors can gain exposure to the stock via Global X Internet of Things ETF (NASDAQ:SNSR) and First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL).

Price Action: SWKS shares are down 6.65% at $81.25 premarket at the last check Wednesday.

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