Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) will be reporting earnings this Tuesday after the bell. Here’s what to expect.
Skyworks Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $934.8 million, down 3.1% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but an increase in its inventory levels.
Is Skyworks Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Skyworks Solutions’s revenue to decline 5.9% year on year, a reversal from the 7.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Skyworks Solutions has a history of exceeding Wall Street’s expectations.
Looking at Skyworks Solutions’s peers in the analog semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Impinj delivered year-on-year revenue growth of 16.7%, beating analysts’ expectations by 4.4%, and Monolithic Power Systems reported revenues up 63.1%, topping estimates by 3.4%. Impinj traded up 3.4% following the results while Monolithic Power Systems’s stock price was unchanged.
Read our full analysis of Impinj’s results here and Monolithic Power Systems’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Investors in analog semiconductors stocks haven’t been spared in this environment as share prices are down 18.8% on average over the last month. Skyworks Solutions is up 5.2% during the same time and is heading into earnings with an average analyst price target of $78.68 (compared to the current share price of $88.25).
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