Skyworks Solutions Inc (NASDAQ:SWKS) stock rose 8.90% (As on February 7, 11:17:30 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 23. Gross profit was $684 million, resulting in a gross margin of 51.5%, up 30 basis points year-over-year and up 20 basis points sequentially. Operating expenses were $193 million, or 14.5% of revenue. First fiscal quarter cash flow from operations was an all-time record of $773 million. Capital expenditures were $64 million, resulting in a record free cash flow of $709 million, and a free cash flow margin of 53%. Mobile was approximately 65% of total revenue with weakness in Android as customers worked down their inventory levels. Broad markets was approximately 35% of revenue with a strong contribution from automotive, infrastructure, industrial and the global shift to Wi-Fi 6E and Wi-Fi 7.

Moreover, the company has  expanded the design win pipeline in several emerging high growth segments. In IoT, the company has extended the broadening technology portfolio across our growing customer base.

SWKS in the first quarter of FY 23 has reported the adjusted earnings per share of $2.59, missing the analysts’ estimates for the adjusted earnings per share of $2.60. The company had reported the adjusted revenue of $1.33 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $1.32 billion.  On a non-GAAP basis, operating income was $491.3 million, translating into an operating margin of 37%.

The company expects fiscal Q2 non-GAAP diluted earnings to be in the range of $2.02 per share on revenue expected to be of between $1.125 billion and $1.175 billion. Analysts surveyed by Capital IQ expect $2.23 per share on $1.20 billion revenue. Gross margin is projected to be in the range of 50% to 50.5%. We expect operating expenses of approximately $189 million to $191 million.

Skyworks Solutions also said it plans to repurchase of up to $2 billion shares from time to time through Feb. 1, 2025. The company has paid $99 million in dividends and repurchased approximately 1.8 million shares of the common stock for a total of $166 million in the quarter.

Moving forward, the rapid expansion of mobile network traffic advances in cloud and edge computing, IoT and the electrification of vehicles, the major trends that drive complexity and demand for the highly integrated and customized solutions.