SW

Skyworks Solutions, Inc. stock research

Sep 29, 2023

FY2023 Q4

Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Sep 29, 2023

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a faster rate, causing gross margin to weaken. Versus the same quarter one year earlier, revenue and gross profit were lower, and gross margin also declined.

Gross margin takeaway

Quarter ended Sep 29, 2023 · FY2023 Q4

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a faster rate, causing gross margin to weaken. Versus the same quarter one year earlier, revenue and gross profit were lower, and gross margin also declined.

  • The relationship among revenue, gross profit, cost of revenue, and gross margin shows that cost of revenue increased more than revenue on a sequential basis, compressing margin. The year-over-year decline in revenue and gross profit was accompanied by a relatively smaller decrease in cost of revenue, further weakening gross margin.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.

Gross margin snapshot

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

Gross margin

39.2%

Gross profit

$478.1M

Revenue

$1.2B

Cost of revenue

$740.7M

Quarter-over-quarter change

-4.1 pts

Year-over-year change

-8.3 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%
Jun 30, 2023$1.1B$464.1M$607.1M43.3%
Sep 29, 2023$1.2B$478.1M$740.7M39.2%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-4.1 pts

Year-over-year change

Sep 30, 2022

-8.3 pts

What the margin says

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

The relationship among revenue, gross profit, cost of revenue, and gross margin shows that cost of revenue increased more than revenue on a sequential basis, compressing margin. The year-over-year decline in revenue and gross profit was accompanied by a relatively smaller decrease in cost of revenue, further weakening gross margin.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.

Monitor the trajectory of cost of revenue relative to revenue, as its faster sequential growth drove margin compression.