Skyworks Solutions (SWKS), with a market cap of $14.44 billion, designs, develops, manufactures, and markets proprietary semiconductor products in the U.S., China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Based in Irvine, California, Skyworks is a dominant player in RF (radio frequency) components, essential for wireless connectivity on numerous devices. Its innovative solutions support a wide range of applications, from smartphones and tablets to smart home devices and automotive systems.
Skyworks Solutions shares significantly underperformed the broader market over the past year. The stock has declined 14% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 24.9%. In 2024 alone, the stock has lost 19.6%, compared to SPX's 10.1% gains on a YTD basis.
Narrowing the focus, SWKS’s underperformance is also evident when compared to the SPDR S&P Semiconductor ETF (XSD). The exchange-traded fund has gained 17.1% over this period. Also, the ETF’s 9.3% returns on a YTD basis compare to the stock’s loss over the same time frame.
On Apr. 30, Skyworks Solutions reported its Q2 results, with revenue matching forecasts but EPS exceeding Wall Street expectations. However, the stock declined 15.3% on May 1.
For the current fiscal year, ending in September, analysts expect SWKS’ EPS to decline by 31.4% year over year to $5.22 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 25 analysts covering SWKS stock, the consensus rating is a “Hold.” That’s based on five “Strong Buy” ratings, 18 “Holds,” and one “Moderate Sell,” and one “Strong Sell.”
This configuration is significantly less bullish than three months ago, with 10 suggesting a “Strong Buy” and the consensus rating being a “Moderate Buy.”
On May 2, Ruben Roy from Stifel Nicolaus maintained a “Buy” rating on Skyworks Solutions with a price target of $112.00. However, Citi (C) analyst Atif Malik maintained a “Sell” rating on the stock with a price target of $83.00.
The mean price target of $100.41 represents an 11.5% premium to SWKS’ current price levels. The Street-high price target of $125 suggests an upside potential of 38.9%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
