Why Skyworks Solutions Stock Is Falling After Hours

Skyworks Solutions Inc SWKS shares are falling after it reported second-quarter earnings, with sales meeting expectations and earnings missing estimates. The company also guided for the next quarter.

Skyworks reported adjusted EPS of $2.02, missing estimates of $2.03 per share. However, the company's sales for the quarter came in at $1.15 billion against analyst estimates of $1.15 billion.

The company generated second-quarter operating cash flow of $411.7 million. 

In other key achievements, the company also launched tri-band, Wi-Fi 6E and Wi-Fi 7 gateways for CommScope and ASUS and secured 5G platforms with a market leader in mobile computing.

Skyworks' non-GAAP gross margin for the quarter was 50%, down from 51.2% in the prior-year quarter. The non-GAAP operating margin was 33.5%, down from 36.8%. 

The company ended the quarter with cash and equivalents of $1.06 billion.

"Despite a challenging macro backdrop, the fundamentals of our business remained strong in the second quarter with solid profitability and robust cash generation," said Liam K. Griffin, chairman, chief executive officer and president of Skyworks. 

Outlook: Skyworks provided guidance for the third quarter, with revenue expected to be $1.05 billion to $1.09 billion, lower than the analyst estimates of $1.15 billion. The company expects adjusted EPS to be $1.67 at the midpoint of the revenue range, much lower than the consensus of $2.08.

Price Action: SWKS shares are down 4.31% at $100.70 in the after-hours session on the last check Monday.

Note: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.