SW

Skyworks Solutions, Inc. stock research

Mar 29, 2024

FY2024 Q2

Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Mar 29, 2024

Revenue declined relative to both the preceding quarter and the year-ago period, while cost of revenue decreased from the prior quarter but remained level with the year-ago figure. Consequently, gross profit fell and gross margin weakened compared with both periods.

Gross margin takeaway

Quarter ended Mar 29, 2024 · FY2024 Q2

Revenue declined relative to both the preceding quarter and the year-ago period, while cost of revenue decreased from the prior quarter but remained level with the year-ago figure. Consequently, gross profit fell and gross margin weakened compared with both periods.

  • The most observable driver of the margin change was the combination of lower revenue and a cost of revenue that did not decline proportionally; cost of revenue was unchanged from a year ago despite a revenue drop.
  • Compared with the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was unchanged, and gross margin weakened.

Gross margin snapshot

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

Gross margin

40.2%

Gross profit

$420.3M

Revenue

$1.0B

Cost of revenue

$625.7M

Quarter-over-quarter change

-2.0 pts

Year-over-year change

-5.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$1.1B$464.1M$607.1M43.3%
Sep 29, 2023$1.2B$478.1M$740.7M39.2%
Dec 29, 2023$1.2B$506.6M$694.9M42.2%
Mar 29, 2024$1.0B$420.3M$625.7M40.2%

Quarterly comparisons

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

Previous-quarter change

Dec 29, 2023

-2.0 pts

Year-over-year change

Mar 31, 2023

-5.6 pts

What the margin says

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

The most observable driver of the margin change was the combination of lower revenue and a cost of revenue that did not decline proportionally; cost of revenue was unchanged from a year ago despite a revenue drop.

Compared with the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was unchanged, and gross margin weakened.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.

SWKS Gross Margin — Quarter Ended Mar 29, 2024