Skyworks Solutions Earnings Forecast Point to Significant Decline

Skyworks Solutions, Inc. (SWKS), valued at a market capitalization of $9.1 billion, is a leading designer, developer, manufacturer, and marketer of proprietary semiconductor products, both domestically and globally. Established in 1962, the company is headquartered in Irvine, California. It is anticipated that Skyworks will release its Q2 earnings on Tuesday, April 29.

In anticipation of this event, analysts forecast a 31.3% decline in SWKS’ earnings per share (EPS), projecting it to fall to $0.92 from $1.34 in the same quarter last year. Historically, the company has exceeded consensus estimates in three of the past four quarters, though it missed the mark once. In its last quarter, SWKS recorded an EPS of $1.31 but failed to meet the consensus estimate by 1.5%.

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For the fiscal year, analysts predict SWKS will report an EPS of $3.70, which represents a 30.6% decrease from the previous year’s figure of $5.32. Looking ahead to 2026, the EPS is expected to further decline by an annual rate of 22.2%, settling at $2.88.

Over the past year, Skyworks’ stock price has decreased by 42.7%, noticeably trailing the S&P 500 Index’s gain of 6.6% and the slight decline of the Technology Select Sector SPDR Fund (XLK) during the same period.

Following its Q1 earnings announcement on February 5, Skyworks Solutions’ stock experienced a minor increase. The company reported revenues of $1.07 billion, aligning with analyst predictions yet reflecting an 11.1% decline compared to the previous year. For the current quarter, Skyworks expects revenue to be between $935 million and $965 million, with non-GAAP EPS projected at $1.20 at the midpoint.

Despite these figures, analysts express cautious outlooks on SWKS’ future performance, assigning an overall “Hold” rating. Among the 25 analysts covering the stock, opinions vary: one recommends a “Strong Buy,” while 21 endorse “Holds,” one suggests a “Moderate Sell,” and two recommend “Strong Sells.” Notably, the consensus mean price target of $75.23 indicates a potential upside of 31.1% from its current trading level.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For further details, please review the Barchart Disclosure Policy here.

The opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.