Skyworks Solutions, Inc. stock research
FY2024 Q4
Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Sep 27, 2024
Revenue increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was lower, but gross margin strengthened as cost of revenue declined more sharply than revenue.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q4
Revenue increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was lower, but gross margin strengthened as cost of revenue declined more sharply than revenue.
- The gross margin improved sequentially and year-over-year, driven by a proportionally larger reduction in cost of revenue relative to revenue in the year-ago comparison, and by revenue growth outpacing cost growth in the sequential comparison.
- Sequentially, revenue, gross profit, and gross margin all increased. Year-over-year, revenue and gross profit were lower, but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.9%
Gross profit
$429.8M
Revenue
$1.0B
Cost of revenue
$595.2M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| Dec 29, 2023 | $1.2B | $506.6M | $694.9M | 42.2% |
| Mar 29, 2024 | $1.0B | $420.3M | $625.7M | 40.2% |
| Jun 28, 2024 | $905.5M | $364.1M | $541.4M | 40.2% |
| Sep 27, 2024 | $1.0B | $429.8M | $595.2M | 41.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
+1.7 pts
Year-over-year change
Sep 29, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a proportionally larger reduction in cost of revenue relative to revenue in the year-ago comparison, and by revenue growth outpacing cost growth in the sequential comparison.
Sequentially, revenue, gross profit, and gross margin all increased. Year-over-year, revenue and gross profit were lower, but gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its movement has been the primary observable factor behind gross margin changes.