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Skyworks Stock Sinks After Chipmaker Lowers Outlook For Current Quarter

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Skyworks Solutions (SWKS) plunges over 9.11% in pre trading session on Tuesday as the exceeded Wall Street’s expectations for the fiscal second quarter but fell short of expectations for the current period. SWKS shares dropped during prolonged trading.

For the quarter ended March 31, the Irvine, California-based firm earned an adjusted $2.02 per share on revenues of $1.15 billion, which was in line with expectations. Skyworks’ profits declined 23% year on year, while sales fell 14%.

Skyworks expects adjusted profits per share of $1.67 on sales of $1.07 billion in the current quarter. This is based on the midpoint of its forecast. FactSet surveyed analysts predicted earnings of $2.06 per share on $1.15 billion in sales in the June quarter. Skyworks earned an adjusted $2.44 per share on $1.23 billion in revenues the previous year.

“Despite a challenging macro backdrop, our business fundamentals remained strong in the second quarter, with solid profitability and robust cash generation,” stated Chief Executive Liam Griffin in a news statement.

“At a higher level,” he continued, “we are driving operational efficiency while leveraging our leading-edge technologies and world-class manufacturing capabilities to capture new opportunities across an expanding set of customers.”

Skyworks is a manufacturer of wireless networking semiconductors. It manufactures analog and mixed-signal semiconductors for sectors such as aerospace and defense, automotive, broadband, cellular infrastructure, connected home, industrial, and smartphones.

The board of directors of Skyworks has announced a cash dividend of $0.62 per share of common stock, payable on June 20, 2023, to shareholders of record on May 30, 2023.

“Looking ahead to our third fiscal quarter in 2023, we anticipate revenue of between $1.050 billion and $1.090 billion, with non-GAAP diluted earnings per share of $1.67 at the midpoint of our revenue range,” said Kris Sennesael, Skyworks’ senior vice president and chief financial officer.

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