$SWKS Q2 2024 earnings review
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Summary:
- Skyworks Solutions is facing headwinds in the mobile market, which contributes 2/3 of revenue;
- Negative revenue growth and shrinking margins will probably continue for the remainder of the year.
- The stock has held the $90 level and recovered some after a 15% drop.
Skyworks Solutions, Inc. reported Q2 2024 earnings on April 30th. Total revenue for the quarter was $1.05 billions, in line with previous guidance and -9% with respect to the same quarter last year. Management is guiding lower for the next quarter, and in fact for the rest of the year.
The stock price dropped 15% back to $90-ish, the bottom of our accumulation zone, and recovered some in the intervening days. We believe the stock is being accumulated at these levels, but high exposure to Apple business and the potential for acquisitions make for a relatively volatile ride.
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