Skyworks EPS Miss Sparks 8.7% Drop

Skyworks EPS Miss Sparks 8.7% Drop

Skyworks Solutions Inc. reported third‑quarter results that beat analyst expectations, posting adjusted earnings per share of $1.08 versus the consensus estimate of $1.03 and generating revenue of $935 million, slightly above the $925.91 million forecast and reflecting year‑over‑year growth. On a GAAP basis, the company recorded diluted earnings per share of $0.22 and operating income of $49 million, while adjusted operating income stood at $182 million.

For the current fourth quarter, Skyworks provided adjusted EPS guidance of $1.27, which fell short of the $1.29 consensus, and projected revenue in the range of $1.01 billion to $1.06 billion, with a midpoint of $1.035 billion closely matching the $1.03 billion analyst expectation. The guidance incorporates approximately $5 million of incremental net interest expense, or about $0.03 per share, attributable to financing costs linked to its pending acquisition of Qorvo.

The company indicated that mobile segment revenue is expected to grow sequentially in the high‑teens percentage range for the fourth quarter, driven by new product launches at its largest customer. Broad Markets is forecast to expand roughly 5% year‑over‑year, representing about 39% of total sales.

In a new capital allocation framework, Skyworks announced a $2 billion stock repurchase authorization and the termination of quarterly dividend payments moving forward. CEO and President Phil Brace said the quarter was solid, with mobile demand healthy and Broad Markets delivering double‑digit growth in automotive and data‑center segments.

Following the release of the weaker‑than‑expected EPS guidance, Skyworks shares fell 8.7% in after‑hours trading.