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Skyworks Solutions Faces Revenue Drop As Chip Demand Falls

2024-07-30 22:02:58.321000

Skyworks Solutions Inc (SWKS), a company in the Semiconductors industry, experienced a decline of 1.91% in its stock price, trading at $102.18. The stock saw less active trading volume than usual, with 835,827 shares traded compared to the average volume of 2,144,001 shares. Skyworks Solutions Inc has a rating of 70 in the Semiconductors industry, higher than 70% of stocks, and an overall rating of 48, higher than 48% of all stocks.

In the fourth quarter, the State of Tennessee Treasury Department increased its position in Skyworks Solutions Inc by 152.8%, acquiring an additional 71,899 shares. The department now owns 118,960 shares of Skyworks Solutions worth $13,373,000. Other institutional investors and hedge funds have also added to or reduced their stakes in SWKS.

Skyworks Solutions reported earnings per share of $1.34 for the quarter, beating the consensus estimate of $1.26 by $0.08. The company had revenue of $1.05 billion during the quarter. Skyworks Solutions recently announced a quarterly dividend of $0.68 per share, representing an annualized dividend of $2.72 and a yield of 2.83%. The company has a market cap of $15.44 billion and a price-to-earnings ratio of 18.09. Several brokerages have recently weighed in on SWKS, with an average rating of "Hold" and a consensus target price of $106.25.

Skyworks Solutions reported $905.5 million in revenue for the quarter ended June 28, down from $1.07 billion the previous year. The decline is primarily due to slower-than-expected sales of electric vehicles (EVs), impacted by reduced consumer discretionary spending. Skyworks Solutions and Wolfspeed supply crucial automotive chips to manufacturers like Tesla, Ford, and General Motors. Skyworks forecasted a 10% reduction in chip content for the upcoming iPhone model compared to the current version. Skyworks anticipates fourth-quarter revenue to range between $1 billion and $1.04 billion. The slowdown in chip demand has rippled through the tech and automotive sectors, sending shares of key suppliers, including Skyworks Solutions, tumbling. Investors should keep an eye on the broader implications of reduced consumer spending on discretionary tech purchases like EVs and smartphones. Skyworks Solutions' financial strain underscores the wider challenges facing the tech and automotive industries amid economic uncertainties. Strategic adjustments and resilient supply chains will be pivotal in maintaining market positions and driving future growth. [9232dd67] [421eedab]

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