Skyworks Solutions (SWKS) saw its stock plummet 5.05% in after-hours trading on Wednesday, despite reporting better-than-expected fiscal second-quarter results. The semiconductor company's shares took a hit as investors digested mixed signals from the earnings report and news of leadership changes.
For the quarter ended March 28, Skyworks reported non-GAAP earnings per share of $1.24, surpassing the FactSet consensus estimate of $1.20. Revenue came in at $953.2 million, slightly above analysts' expectations of $951.5 million, but down from $1.05 billion in the same quarter last year. While the company managed to beat estimates, the year-over-year decline in both earnings and revenue may have contributed to investor concerns.
Adding to the market's unease, Skyworks announced significant leadership changes. CFO Kris Sennesael will be stepping down on May 9, 2025, to be succeeded by Mark Dentinger, effective June 2. This transition in the company's financial leadership comes at a crucial time as Skyworks navigates challenging market conditions. Furthermore, the company's outlook for the third quarter suggests a continued struggle, with expectations of a "low single digits" sequential decline in its mobile business. This forecast, combined with the leadership shuffle, appears to have overshadowed the positive aspects of the earnings report, leading to the sharp after-hours sell-off.
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