Key Takeaways:
Skyworks Solutions is expected to report fiscal third-quarter revenue of $922.08 million on July 28, down 4.45% from a year earlier.
"Healthy sell-through at key customers and strong execution on new product launches support our outlook, with increasing RF complexity driven by AI workloads," management said in its prior guidance.
The company guided non-GAAP earnings of $1.03 per share at the midpoint of its $900 million to $950 million revenue range. The consensus estimate has held steady at $1.03 per share over the past 30 days, representing a 22.56% decline from the year-ago quarter. Skyworks has beaten consensus estimates in each of the past four quarters, delivering an average surprise of 12.31%.
The report comes as Skyworks navigates seasonal weakness in its mobile business, which management expects to decline low single digits sequentially. Broad markets, accounting for 43% of sales, are projected to rise modestly sequentially and up high single digits year over year, driven by WiFi, data center and automotive demand. Those three engines collectively grew 30% year over year in the prior quarter and account for nearly two-thirds of the broad markets business.
The company secured a multigenerational Android design win expected to generate more than $1 billion in revenue through 2030, reinforcing its position in premium AI-enabled smartphones. Book-to-bill stood above 1, and channel inventories remained lean, according to management.
Gross margin is projected at 44.5% to 45.5%, flat sequentially. In the fiscal second quarter, gross margin was 45%, contracting 160 basis points year over year.
Skyworks has introduced new BAW filters targeting early 6G FR3 spectrum and next-generation RF front-end solutions supporting frequencies above 7 gigahertz. The company also expanded its timing portfolio with new clock buffers for data center, wireless infrastructure and PCIe Gen 7 applications.
The earnings report will test whether Skyworks can sustain its four-quarter beat streak during mobile seasonality. Investors will focus on broad markets growth trajectory and any updates to the Android design win ramp when the company reports after market close on July 28.
This article is for informational purposes only and does not constitute investment advice.
