Back to top

Image: Bigstock

Skyworks Set to Report Q4 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Skyworks Solutions (SWKS - Free Report) is slated to release fourth-quarter fiscal 2024 results on Nov. 12.

For the fourth quarter of fiscal 2024, earnings are expected to be $1.52 per share at the mid-point of the revenue guidance.

The Zacks Consensus Estimate for earnings has remained steady at $1.52 per share in the past 30 days. The projection indicates a 30.91% decline from the figure reported in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Skyworks Solutions, Inc. Price and EPS Surprise

Skyworks Solutions, Inc. Price and EPS Surprise

Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote

The company expects revenues between $1 billion and $1.04 billion for the fourth quarter of fiscal 2024. 

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $1.02 billion, indicating a 16.17% year-over-year decline.

Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 1.94%.

Let’s see how things might have shaped up prior to the announcement.

Factors Likely to Have Influenced Q4 Performance

SWKS’s fourth-quarter fiscal 2024 performance is likely to have benefited from its diversified portfolio, strong mobile demand and growth in edge IoT and automotive sectors.

Skyworks anticipates a 20% sequential increase in mobile business revenues in the fiscal fourth quarter due to normalizing demand and supply conditions in the smartphone market.

Moreover, 5G content is proliferating in new smartphones, including the Google Pixel 8a, Samsung Galaxy M and Oppo Reno12, particularly in the premium segment of the market. This is likely to have contributed positively to revenues in the fiscal fourth quarter.

SWKS expects modest growth in broad markets, marking a third consecutive quarter of sequential growth. Specifically, strong demand for edge IoT, including Wi-Fi 7 systems, leads to a multiyear upgrade cycle due to faster data transfer speeds and lower latency. These developments are likely to have positively impacted the company’s fiscal fourth-quarter performance. 

The rising adoption of generative AI and 5G technologies has been driving demand for high-performance RF solutions. Skyworks is positioned to benefit from the growing need for fast RF connectivity and power management in AI applications, next-generation smartphones and autonomous vehicles. These tailwinds are likely to have increased the company’s revenues in the quarter to be reported.

Despite some inventory challenges, Skyworks sees long-term growth opportunities in its automotive business. The increasing focus on software-defined vehicles, connected cars and in-cabin user experiences has been generating higher levels of radio complexity, creating demand for Skyworks’ advanced RF solutions. These are expected to have contributed positively to revenues in the to-be-reported quarter as well.

However, challenges from excess inventory, supply chain issues, economic uncertainty, are expected to have 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. But that’s not the exact case here.

Skyworks has an Earnings ESP of 0.00% 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.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Shopify (SHOP - Free Report) has an Earnings ESP of +5.78% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify shares have gained 2.1% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.

Bilibili (BILI - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank of 2 at present.

Bilibili shares have gained 90.8% year to date. BILI is set to report its third-quarter 2024 results on Nov. 14.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank of 2 at present.

NVIDIA shares have gained 182.5% year to date. NVDA is set to report its third-quarter fiscal 2025 results on Nov. 20.

Published in