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Based in Irvine, California, Skyworks Solutions, Inc. (SWKS) designs, develops, manufactures, and markets a broad range of high-performance analog and mixed-signal semiconductors that enable wireless connectivity. Valued at $18.85 billion by market cap, the company’s products are used across the aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearable markets. The leading maker of analog and mixed-signal semiconductors is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect SWKS to report a profit of $0.96 per share on a diluted basis, down 36% from $1.50 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For fiscal 2024, analysts expect SWKS to report EPS of $5.14, down 32.5% from $7.61 in fiscal 2023.
SWKS stock has underperformed the S&P 500’s ($SPX) 19.2% gains over the past 52 weeks, with shares up marginally during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 22.4% gains over the same time frame.
On Jul. 10, SWKS shares closed up more than 4% after Apple Inc. (AAPL) told suppliers and partners that it aimed to ship 90 million iPhone 16 devices during the second half of 2024, a 10% growth in shipments over the last year as it believes that Apple Intelligence features would boost demand for the new model.
On Jun. 12, AAPL supplier SWKS’ shares closed up more than 6% after the iPhone maker introduced new AI features. These included updates to its operating systems and a new AI platform called Apple Intelligence, which is deeply integrated into iOS 18, iPadOS 18, and macOS Sequoia.
On Apr. 30, SWKS reported its Q2 results. Its non-GAAP EPS of $1.55 beat the consensus estimates of $1.52. The company’s revenue of $1.05 billion matched Wall Street forecasts, and its operating cash flow was $300 million. SWKS forecast revenue for Q3 to be $900 million, plus or minus 2%, and non-GAAP EPS to be $1.21, at the mid-point of the revenue range.
SWKS’ Senior vice president and CFO Kris Sennesael said, “We expect our mobile business to be down sequentially, below normal seasonal patterns, as excess inventory clears. In broad markets, we anticipate further modest growth as inventory levels appear to be normalizing in certain end markets.” SWKS’ shares closed down more than 15% in the session following the day the results were released.
Analysts’ consensus opinion on SWKS stock is neutral, with a “Hold” rating overall. Out of 25 analysts covering the stock, six advise a “Strong Buy” rating, 17 have a “Hold” rating, one recommends a “Moderate Sell” rating, and one gives a “Strong Sell.” The average analyst price target for SWKS is $104.47, indicating an 8.1% potential downside from the current levels.
On the date of publication, Dipanjan Banchur 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.
