Skyworks Solutions, Inc. stock research
FY2024 Q1
Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Dec 29, 2023
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened.
Gross margin takeaway
Quarter ended Dec 29, 2023 · FY2024 Q1
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue declined, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened.
- The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue alongside stable revenue. This was the strongest observable factor in the current period.
- Gross margin improved compared to the immediately preceding quarter, but was lower than the same quarter one year earlier. Revenue was unchanged sequentially, while cost of revenue decreased; year-over-year, both revenue and gross profit declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.2%
Gross profit
$506.6M
Revenue
$1.2B
Cost of revenue
$694.9M
Quarter-over-quarter change
+2.9 pts
Year-over-year change
-5.8 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% |
| Sep 29, 2023 | $1.2B | $478.1M | $740.7M | 39.2% |
| Dec 29, 2023 | $1.2B | $506.6M | $694.9M | 42.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2023
+2.9 pts
Year-over-year change
Dec 30, 2022
-5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue alongside stable revenue. This was the strongest observable factor in the current period.
Gross margin improved compared to the immediately preceding quarter, but was lower than the same quarter one year earlier. Revenue was unchanged sequentially, while cost of revenue decreased; year-over-year, both revenue and gross profit declined.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the sequential margin improvement.