AAPL - Skyworks Solutions: My Concern Is A Softer Guidance - Initiating With Hold

2024-05-01 10:00:52 ET

Summary

• Skyworks Solutions announced earnings for its second quarter of FY2024 with a massive guidance disappoint.
• The company's stock has underperformed the S&P 500 over the past three months, and there is no expected uptick in demand for its mobile products into the next quarter.
• Also, Skyworks heavily relies on sales to Apple, which has been under pressure due to weak smartphone demand and no growth catalyst in sight.
• I share my thoughts on Skyworks here and why I think it doesn't have much upside in 2024.

Investment Thesis

Skyworks Solutions, Inc. ( SWKS ), a wireless semi-provider of "RF and complete semi-system solutions for mobile communication applications," announced earnings for its second quarter of FY2024 earlier this week. I wasn't too optimistic ahead of earnings, and am still not after guidance. I initiate Skyworks with a Hold; I think the company has more downside risk because of its exposure to mobile sales as the smartphone end demand sags....

For further details see: