Skyworks Solutions SWKS is slated to release second-quarter fiscal 2024 results on Apr 30.
For the second quarter of fiscal 2024, the company currently expects revenues between $1.02 billion and $1.07 billion. Earnings are expected to be $1.52 per share at the mid-point of this revenue guidance.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.05 billion, indicating a 9.28% year-over-year decline.
The consensus mark for earnings has remained steady at $1.52 per share in the past 30 days. The projection indicates a 24.75% decline from that reported in the year-ago quarter.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 2.47%.
Let’s see how things might have shaped up prior to the announcement.
Factors Likely to Have Influenced Q2 Performance
Skyworks’ fiscal second-quarter performance is expected to have benefited from the improved demand for smartphones. The company is poised to benefit from its position in the global smartphone market, presenting significant growth opportunities.
According to Canalys’ latest research findings, global smartphone shipments witnessed 11% year-over-year growth in the first quarter of 2024.
The company is expected to have benefited from 5G design wins for premium Android smartphones and expanding partnerships with major players like Google and Samsung, positioning it to capitalize on the ongoing adoption of high-performance solutions by key customers.
Skyworks is expected to have benefited from the rapid expansion of IoT, the electrification of vehicles and the high-speed connectivity for AI-enabled data-intensive infrastructure in cloud applications.
SWKS’ robust uptake of Wi-Fi 6E and 7 solutions, owing to the growing demand for its high-speed connectivity, video-streaming and web-based learning trends, is expected to have driven Skyworks’ top line in the fiscal second quarter.
However, challenges in wireless infrastructure and traditional data center end-markets are expected to hurt SWKS’ top-line growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Skyworks has an Earnings ESP of +0.73% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 15% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Docebo DCBO has an Earnings ESP of +8% and a Zacks Rank #1.
Docebo’s shares have declined 9.1% year to date. DCBO is set to report its first-quarter 2024 results on May 9.
Amazon.com AMZN has an Earnings ESP of +6.19% and a Zacks Rank #2.
Amazon.com’s shares have gained 14.3% year to date. AMZN is set to report its first-quarter 2024 results on Apr 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%… an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Docebo Inc. (DCBO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
