Q224 SWKS earnings

Q3 2024 Revenue: Expected $900 million, plus or minus 2%
Q3 Gross Margin: Projected in the range of 45% to 47%
Q3 Operating Expenses: Expected between $192 million to $198 million
Q3 Diluted Earnings per Share: Intended to be $1.21 at the midpoint of the revenue range
Capital Expenditures: $28 million in Q2, indicative of a conservative spend reflecting high prior investments and current revenue downscaling

Mobile Business Demand Weakness: Observed below-normal seasonal trends and lower than expected end market demand affecting the mobile sector.
Broad Markets: Noted a modest sequential growth in broad markets, indicating a potential turnaround from previous quarters.
Inventory Management: Significant focus on managing internal inventory which decreased by $91 million to $836 million, marking five consecutive quarters of reductions.
Automotive and Industrial Pressure: Continuous pressure from inventory corrections in automotive and industrial markets, despite long-term growth opportunities identified by the company.
AI Infrastructure: Bullish outlook on AI workloads driving upgrades and generating demand for Skyworks’ technologies.
Connectivity Technology Expansion: Strategic focus on leveraging connectivity technology across multiple growth segments, particularly highlighting the evolution towards software-defined vehicles and AI-enabled devices.

Liam Griffin on Strategy and Outlook: “Despite near-term headwinds, we remain bullish on our long-term strategy.”
Kris Sennesael on Financial Performance and Guidance: “Our solid capital structure provides us with excellent flexibility and optionality.”
Liam Griffin on Technology Trends: “Connectivity is crucial in enabling AI on decentralized edge systems,” emphasizing the significance of RF technology in current and future applications.
Kris Sennesael on Gross Margin Improvement: “We expect gross margin expansion during the remainder of 2024, driven by our cost reduction actions, favorable mix shift, and higher utilization rates.”