Skyworks Solutions, Inc. (SWKS) released its first-quarter financial performance results on Wednesday, revealing a decline in both profit and revenue compared to the previous year. In a strategic move, the company has sanctioned a new $2 billion stock buyback initiative and announced the appointment of Philip Brace as the new CEO.
For the first quarter, revenue totaled $1.068 billion, a decrease from the prior year's $1.201 billion. The net income reported was $162 million, or $1.00 per share, falling from $231.3 million, or $1.44 per share, recorded in the same period last year. When adjusted, the net income amounted to $258.3 million or $1.60 per share, compared to the earlier year's $317.0 million or $1.97 per share.
This performance aligned closely with analysts' expectations, who had forecasted earnings of $1.57 per share on revenue of $1.07 billion.
Looking ahead to the second quarter, Skyworks anticipates revenue between $935 million to $965 million, with adjusted earnings per share projected at $1.20, at the midpoint.
In line with its "disciplined capital allocation strategy," the company has greenlit a fresh $2 billion stock repurchase program, further complemented by the board's announcement of a cash dividend of $0.70 per share. This dividend is set for distribution on March 17, 2025, to shareholders recorded by the close of February 24, 2025.
In a notable leadership transition, Philip Brace has been named as the incoming president and chief executive officer and will join the board of directors starting February 17, 2025. Brace will succeed Liam Griffin, who is stepping down from his roles as president and CEO. Griffin will continue in an advisory role for three months to facilitate a smooth leadership transition.
Additionally, Liam Griffin has resigned from the board of directors, with Christine King, previously serving as Skyworks' lead independent director since 2019, appointed as the new chairman of the board.
