IRVINE, Calif. - Skyworks Solutions, Inc. (NASDAQ:SWKS) saw its stock surge 3.5% after the semiconductor company reported better-than-expected fourth-quarter earnings and provided strong guidance for the current quarter.
The company posted adjusted earnings per share of $1.55 for the fourth quarter, surpassing analyst estimates of $1.52. Revenue for the quarter came in at $1.02 billion, in line with consensus expectations.
Skyworks' fourth-quarter revenue grew 13% sequentially, exceeding the midpoint of the company's guidance. The company also highlighted its strong cash flow generation, reporting a record 40% free cash flow margin for fiscal 2024.
Looking ahead, Skyworks provided an optimistic outlook for the first quarter of fiscal 2025. The company expects revenue between $1.05 billion and $1.08 billion, with adjusted earnings per share of $1.57 at the midpoint of the revenue range. While the EPS guidance fell short of the $1.69 analyst consensus, the revenue forecast was only slightly below the $1.09 billion estimate.
Liam K. Griffin, chairman, CEO, and president of Skyworks, expressed confidence in the company's future prospects, stating, "Looking ahead, we believe AI is poised to ignite a transformative smartphone upgrade cycle, propelling the demand for higher levels of RF complexity. We are in the early stages of this multi-year trend and Skyworks is well-positioned to capitalize on it."
The company also declared a quarterly dividend of $0.70 per share, payable on December 24, 2024, to stockholders of record as of December 3, 2024.
Skyworks reported several business highlights for the quarter, including securing 5G content for premium Android smartphones and expanding Wi-Fi 7 design wins with major networking companies.
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