Skyworks Solutions (NASDAQ:SWKS), a producer of analog semiconductors, reported a slight beat on both revenue and earnings per share (EPS) for the fourth quarter of fiscal year 2023, despite facing a year-on-year revenue drop of 13.4% to $1.22 billion. The non-GAAP profit was $2.20 per share, down from $2.02 in the same period last year.
The company, which emerged from a merger between Alpha Industries and Conexant, further provided a lower-than-expected revenue guidance for the first quarter of fiscal year 2024, falling short of analyst estimates by 6.89%. The guidance was set at $1.2 billion.
Skyworks also reported a decrease in its GAAP gross margin, which fell to 39.2% from 47.5% in the previous year. Inventory days outstanding saw a decline as well, dropping to 138 from 185 in the previous quarter.
Despite these challenges, the semiconductor producer managed to generate a record free cash flow above $1.6 billion for fiscal 2023, marking a robust year-on-year growth of 76%. This achievement was attributed to Skyworks' resilient business model and strategic investments in growth sectors.
The company's financial performance is closely tied to economic growth due to its own chip production and longer product cycles of 5-7 years.
InvestingPro Insights
Based on InvestingPro's real-time data, Skyworks Solutions has demonstrated a strong financial performance, boasting a market capitalization of $14.27 billion and a P/E ratio of 13.75, as of Q3 2023. The company has also shown resilience with a Return on Assets of 12.12% during the same period. However, the revenue growth has been a concern, with a decrease of 7.96% over the last twelve months as of Q3 2023.
In terms of InvestingPro Tips, it's worth noting that Skyworks has consistently generated high returns on invested capital and has a history of raising its dividend for 9 consecutive years, which is a testament to its financial stability. Also, despite the declining trend in earnings per share, the company operates with a high return on assets, further indicating its profitability.
To access more than 16 additional tips and insights about Skyworks Solutions, consider exploring the InvestingPro platform which provides comprehensive data and insights to guide your investment decisions.
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