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Irvine, California-based Skyworks Solutions, Inc. (SWKS) designs, develops, manufactures, and markets proprietary semiconductor products. Valued at a market cap of $14.8 billion, the company's products include power amplifiers (PAs), front-end modules (FEMs), radio frequency (RF) sub-systems, and cellular systems. It is expected to announce its fiscal Q1 earnings results after the market closes on Tuesday, Feb. 4.
Ahead of this event, analysts project the semiconductor company to report a profit of $1.33 per share, down 22.2% from $1.71 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's earnings estimates in the last four quarters. In Q4, SWKS’s adjusted EPS of $1.55 outpaced the forecasted figure by a margin of 2%.
For fiscal 2025, analysts expect Skyworks to report an EPS of $4.45, down 16.5% from $5.33 in fiscal 2024. Nonetheless, in fiscal 2026, EPS is expected to grow 17.5% year-over-year to $5.23.
Shares of SWKS have declined 12.7% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 24.4% rise and the Technology Select Sector SPDR Fund’s (XLK) 23.9% return over the same time frame.
On Nov. 12, Skyworks released its Q4 earnings results, and its shares plunged 4.4% the following day due to a concerning 29.5% year-over-year fall in its adjusted EPS to $1.55 and a discouraging 15.9% annual decline in its revenues to $1 billion. Muted global demand in its automotive and industrial markets due to excess inventory primarily led to its poor performance. Moreover, a 70 bps drop in its gross margin and a 600 bps decline in operating margin might have further lowered investor confidence. However, on the brighter side, the top-line figure met the consensus estimates, while the bottom line surpassed the forecasted figure by 2%.
Wall Street analysts are cautious about Skyworks stock, with a "Hold" rating overall. Among 25 analysts covering the stock, five recommend "Strong Buy," 17 suggest “Hold,” one indicates a “Moderate Sell,” and two suggest “Strong Sell.”
The mean price target for SWKS is $95.11, which indicates a slight 2.7% potential upside from the current levels.
