Skyworks Solutions, Inc. stock research
FY2023 Q3
Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined but at a slower pace relative to revenue. As a result, gross margin weakened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined but at a slower pace relative to revenue. As a result, gross margin weakened sequentially and year-over-year.
- The decline in gross margin was driven by revenue falling faster than cost of revenue, compressing the spread between them. The strongest observable driver is the relative movement of revenue versus cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter one year earlier, all three metrics were lower and gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$464.1M
Revenue
$1.1B
Cost of revenue
$607.1M
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-4.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.2B | $527.4M | $625.7M | 45.7% |
| Jun 30, 2023 | $1.1B | $464.1M | $607.1M | 43.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-2.4 pts
Year-over-year change
Jul 1, 2022
-4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by revenue falling faster than cost of revenue, compressing the spread between them. The strongest observable driver is the relative movement of revenue versus cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter one year earlier, all three metrics were lower and gross margin also weakened.
Monitor the trajectory of revenue relative to cost of revenue, as the narrowing gap has pressured gross margin in recent periods.