Skyworks Solutions (SWKS) Q4 2024 earnings summary

Executive summary

• Q4 FY2024 revenue was $1.025 billion, up 13% sequentially, with non-GAAP EPS of $1.55 and free cash flow of $393 million, meeting or exceeding guidance midpoints.

• Mobile revenue grew 21% sequentially, driven by normalized inventory and seasonal ramps; broad markets saw modest growth since the December 2023 bottom.

• Strong design win momentum in 5G, Wi-Fi 7, automotive, and IoT, with key customers including Google, Samsung, NETGEAR, and Mercedes-Benz.

• Management highlights robust cash generation and positions the company to benefit from AI-driven smartphone upgrades.

Financial highlights

• Q4 net revenue: $1.025B (down from $1.219B YoY); FY24 net revenue: $4.178B (down from $4.772B YoY).

• Q4 gross profit was $476 million with a non-GAAP gross margin of 46.5%, up 50 bps sequentially.

• Q4 non-GAAP operating income reached $273 million (27% margin); non-GAAP net income was $249.9 million.

• Free cash flow for Q4 was $393 million (38% margin); FY2024 free cash flow was $1.668 billion at a 40% margin.

• Paid $112 million in dividends during Q4; dividend recently increased by 3% to $0.70 per share.

Outlook and guidance

• Q1 FY2025 revenue expected at $1.05–$1.08 billion, up 4% sequentially at midpoint; non-GAAP diluted EPS forecasted at $1.57 at the midpoint.

• Mobile business projected to grow mid-single digits sequentially; broad markets to see further modest sequential and year-over-year growth despite inventory headwinds.

• Gross margin guided at 46–47%; operating expenses expected at $209–$215 million.

• March quarter expected to be seasonally down in mobile, with broad markets continuing modest sequential growth.