SW

Skyworks Solutions, Inc. stock research

Mar 31, 2023

FY2023 Q2

Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened relative to both periods, reflecting that the reduction in revenue outpaced the reduction in cost of revenue.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q2

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened relative to both periods, reflecting that the reduction in revenue outpaced the reduction in cost of revenue.

  • The decline in gross profit was proportionally larger than the decline in revenue, which drove the gross margin lower. Cost of revenue fell at a slower rate than revenue, compressing the margin.
  • Compared to the immediately preceding quarter, gross margin was lower; versus the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were lower in both comparisons.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

45.7%

Gross profit

$527.4M

Revenue

$1.2B

Cost of revenue

$625.7M

Quarter-over-quarter change

n/a

Year-over-year change

-2.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.2B$527.4M$625.7M45.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Apr 1, 2022

-2.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decline in gross profit was proportionally larger than the decline in revenue, which drove the gross margin lower. Cost of revenue fell at a slower rate than revenue, compressing the margin.

Compared to the immediately preceding quarter, gross margin was lower; versus the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were lower in both comparisons.

Monitor the trajectory of cost of revenue relative to revenue, as the slower decline in cost of revenue was the primary factor in the margin compression.

SWKS Gross Margin — Quarter Ended Mar 31, 2023